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Copyright © 2006 by Early to Rise

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by
any means, electronic, or mechanical, including photocopying, recording, or by any information stor-
age and retrieval system, without permission in writing from the publisher.

Published by:
Early to Rise
245 NE 4th Avenue, Suite 201
Delray Beach, FL 33483
Phone: 1-866-565-1117
Canadian and Global Customers: 1-203-699-2995
Web site: www.earlytorise.com Email: support@earlytorise.com
China Wholesale Secret Program
Start Your Own Internet Import/Export Business

OVERVIEW
Chapter 1: The Multi-Trillion Dollar Import/Export Market ..................................................................1
Chapter 2: Benefits of an Internet Import/Export Business ..............................................................4
Chapter 3: Hot New Rising Trends ........................................................................................................6
Chapter 4: The Most Powerful Import/Export Website on the Internet for Entrepreneurs ....12
Chapter 5: Google and other Monster Traffic Generators..............................................................17

NUTS AND BOLTS


Chapter 6: Nuts and Bolts of an Online Import/Export Business ................................................30
Chapter 7: How to Determine Which Products to Import/Export ................................................35
Chapter 8: Obtaining Products from Overseas Manufacturers for the Wholesale Market ....37
Chapter 9: Reselling Products on the Internet ..................................................................................41
Chapter 10: Wholesaling Products to Retailers................................................................................46
Chapter 11: How to Become an Import/Export Middleman ..........................................................50

MARKETING
Chapter 12: Dominating Internet Search Engines and Directories ..............................................53
Chapter 13: Powerful Linking Strategies ............................................................................................58
Chapter 14: Buying Keywords and Phrases on Search Engines..................................................62
Chapter 15: The Secrets of Effective Online Advertising ..............................................................67
Chapter 16: Reselling Imported Products with Online Classified Ads........................................71
Chapter 17: How to Build and Market eStores “On Demand” ......................................................74

ACTION PLAN
Chapter 18: Fast Start Strategy — Completing Your First Deal ....................................................78
Chapter 19: Growing Your Business for Even Bigger Profits........................................................86
Chapter 20: Importing and Exporting Billionaires ............................................................................90
Chapter 21: Focus on One Product at a Time ..................................................................................93

ADDITIONAL RESOURCES
Chapter 22: Trade Resources................................................................................................................98
Chapter 23: Forms, Contracts and Agreements ............................................................................105
Terminology ............................................................................................................................................120
INTRODUCTION

Introduction
Dear Entrepreneurs:
We’re pleased to present to you this comprehensive import/export business kit.

Congratulations for making the decision to learn about and launch this fascinating business.

Rest assured — you’ve made the right decision!

This business is NOT a passing trend that will be obsolete in a couple of years from now.

The import export market is a multi-trillion dollar market — and it’s growing by leaps and
bounds every day.

On top of that, there has never been a better time to get into this business — what is more, the
Internet has made it easier than ever.

Just imagine what the great importing tycoons of times past could have done with the Internet.
My guess is they would have been thrilled!

This kit is packed with up-to-date information to help you get started quickly and easily.

More important, this kit is designed to enable you to start making money immediately!

There will be a tendency to skip through the kit and grab only the information that appeals to
you at the moment.

I know you want to start importing and exporting products as soon as possible. And we’ve
designed this kit so you can get started making money quickly.

But please take the time to read, study and review this information with as much focus as is
humanly possible.

The benefits for doing that will manifest itself for months, years and decades down the road.

We’ve also designed this import/export business kit much like the Egyptians did when they built
the great pyramids.

We’ve laid a strong foundation so you can build your import/export business as large or as small
as you want.

But regardless of the size and scope of your venture you will have a firm foundation on which
to build.

By the way, you could search the Internet for a lifetime and you would never find all of this
information in one place.

In addition, we’ve consulted with many of the greatest business minds, entrepreneurs and
INTRODUCTION

import/export gurus on the planet with a view toward developing THE BEST IMPORT/EXPORT
BUSINESS KIT THAT MONEY CAN BUY.

We spared no expense in showing you all of the pitfalls that beset most entrepreneurs that get
involved in the import/export market.

The hardest part of an import/export business is finding products that have the greatest
demand. But we’ve made it easy for you. This kit contains all of the hottest products and markets on
the market today.

What’s more, we’ll show you HOW to identify and contact hundreds of companies that need
products immediately!

Importing and exporting is the largest marketplace in the world today.

Imports to China will be more than $1.5 trillion in 2006 — that’s trillion.

More important, the Chinese import market is still in its infancy.

And China isn’t the only show in town… There are more than 195 countries in the world today,
many looking for products that you can provide.

Granted, boarders change on a daily basis. But there are a lot of countries that NEED products
and are willing to pay for them.

For example:
 Japan’s imports from the U.S. increased to more than $12 billion in 2005.
 U.K.’s imports were more than $4 billion.
 Brazil’s imports were more than $1.5 billion.
If you think that’s great — then you’ll love this:

You can import products and sell them on the Internet… all from your own home.

This kit shows you all of the “nuts and bolts” of importing products and reselling them
on the Internet.

Your importing or exporting business can be up and running in a matter of hours.

You don’t even need a website or ecommerce to make it work!

In addition, this kit includes a section on Internet search engines, keywords and linking strategies.

The import export market is a 24-hour windfall of cash


You’ll learn about the hottest import export website on the Internet. They boast more than
1.7 million active members — most of whom are entrepreneurs just like you.

The benefits of importing and exporting are too numerous to mention here.

But know this — this is one of the great liberating businesses of the 21st century!
INTRODUCTION

 You can run your import export business from anywhere in the world.
 You can build it as small or as large as you want.
 You can specialize in products or industries that you’re most knowledgeable about or you
can delve into new markets.
Everything you need to be successful is right here in this import/export business kit.
So take your time and focus on all of the material that we’ve assembled for your benefit.
You won’t be disappointed.
Congratulations!
Sincerely,

Marc Charles
Early To Rise
CHAPTER 1: The Multi-Trillion Dollar Import/Export Market

CHAPTER 1

The Multi-Trillion Dollar Import/Export Market


The worldwide import/export market is a multi-trillion dollar windfall of cash!

A hundred years ago it was almost impossible for small entrepreneurs to break into this market
because one needed significant capital, contacts and a lot of expertise in international law and contracts.

All that has changed.

Today entrepreneurs can start an import/export business from the comfort of their own home
with just with a computer, phone line, Internet access and a bank account.

On top of that, there are hundreds of websites and resources available to entrepreneurs today
that didn’t exist ten years or even five years ago.

For instance, the website Alibaba.com is the largest and most successful import/export site for
entrepreneurs in the world.

Alibaba.com boasts of more than 18 million members in 200 countries!

And that’s only the tip of the iceberg!

Although Alibaba.com facilitates more than $5 billion in import/export transactions each year —
that still leaves trillions of dollars in business on the table.

The international import/export business is the new frontier of the 21st century for both aspiring
and established entrepreneurs… this is where opportunity awaits.

Here are some recent testimonials from a few of the


import/export entrepreneurs on Alibaba.com:
 Mr. Wai Khean Wong (Malaysia/Home & Office Furniture)
“Our first order was valued at close to $160,000 USD!”
 Mr. Jason Yee (Singapore/Refurbished Notebooks)
“Ten deals and all stocks sold out!”
 Mr. Choi Jin-Woo (South Korea/Health and Beauty Products)
“Within one month, we received dozens of inquiries from buyers in more than 50 countries.”
 Mr. Chester Chou (Taiwan/Sports Products)
“Ten purchase orders for $100,000 USD in first year on Alibaba.”
 Ms. Diana De Avila (USA/Clothes)
“Alibaba.com is our competitive edge. We receive more than 250 inquires a month!”

Start Your Own Internet Import/Export Business 1


CHAPTER 1: The Multi-Trillion Dollar Import/Export Market

 Mr. Kan Sen Leon (Peru/Clothes-Apparel)


“When I signed up for TrustPass, the demand for my products skyrocketed.”
 Cai Xia (China/Interactive Toys, Arts & Crafts)
“For 3 months, on average we received about 10-20 inquiries a week from overseas buyers.
A great result!”
 Mr. Henry Stewart (USA/General Merchandise)
“It is the best website to source from in the world!”
The sky is the limit with an import/export business!
What’s more, businesses in practically every country of the world need thousands of different
products in hundreds of categories.
This is a ground floor opportunity in every sense of the word.
Look at these recent import/export statistics:
 China imports are estimated to be more than $1.5 trillion by 2007!
 Japan imports from the US are expected to exceed $12 billion by 2007
 UK imports from US - $4 billion by 2007
 Brazil imports from US $1.5 billion by 2007
 New Zealand imports from US should exceed $170 million — by 2007
 US exports to Canada should exceed $28 billion by 2007!
 US exports to Mexico $17 billion by 2007
 US exports to France $2 billion by 2007
 US exports to Hong Kong $2 billion by 2007

The leading import countries in 2004 are (in order):


 United States $1.6 trillion
 Germany $716 billion
 China $561 billion
 France $470 billion
 UK $467 billion
 Japan $454 billion
 Italy $355 billion
 Netherlands $319 billion
 Canada $280 billion
 Belgium $278 billion

The leading export countries in 2004 are (in order):


 Germany $910 billion
 United States $818 billion
 China $593 billion
 Japan $566 billion

2 China Wholesale Secret Program


CHAPTER 1: The Multi-Trillion Dollar Import/Export Market

 France $452 billion


 Netherlands $357 billion
 Italy $354 billion
 UK $347 billion
 Canada $317 billion

The total world import/export market


will exceed $10 trillion dollars by 2010!
This is the largest marketplace in the world or on the Internet.
There are unlimited opportunities for entrepreneurs of every background and level.
We’ll show you in plain, everyday language, HOW to tap into this trillion-dollar marketplace from
the comfort of your home so you can start generating major profits too.
Here’s a glimpse of what you’ll learn:
 Hot New Rising Trends
 The Most Powerful Import/Export Website on the Internet for Entrepreneurs
 The Benefits of an Internet Import/Export Business
 The Truth About Internet and Email Marketing
 How to Determine Which Products to Import/Export
 How to Obtain Products from Overseas Manufacturers for the Wholesale Market
 How to Resell Products on the Internet
 How to Wholesale Products to Retailers
 How to Become an Import/Export Middleman

Plus!
 How to Dominate Internet Search Engines and Directories
 How to Utilize Powerful Linking Strategies
 How to Buy Keywords and Phrases on Search Engines (in order to sell products)
 The Secrets of Effective Online Advertising
 How to Resell Imported Products with Online Classified Ads
 How to Attract Customers with Monster Prospect Machines
 How to Build and Market eStores “On Demand”
You can scour the Internet, Google, Research Libraries, the Public Domain and Business Colleges
a LIFETIME — but you will never find all of this information in one, easy-to-read report.
Until Now!

Start Your Own Internet Import/Export Business 3


CHAPTER 2: Benefits of an Internet Import/Export Business

CHAPTER 2

Benefits of an
Internet Import/Export Business
The benefits of owning your own Internet Import/Export business are too numerous to list, but
here are just some of the benefits that you can enjoy:

 Be your own boss


One of the greatest freedoms in the world is working for yourself and calling all of the shots.
If you have a hunch you can act on it without having to go through middle managers and
people who don’t have the same passion and excitement for your business as you do.

 Work your own hours


Imagine working when you feel like it. Maybe you prefer to work late at night when
the kids are in bed. Or maybe you are an early riser and prefer to get everything done
before 10 o’clock. You can set and work your own hours. The problem is you’ll enjoy this
business so much you’ll want to work all the time!

 Unlimited profit potential


There are very few businesses in the world that offer unlimited profit potential. Most retail
businesses are dependant on foot traffic. Other businesses may have huge profit potential
but also require you to have a substantial net worth. An import/export business has
unlimited profit potential. One of the great import/export entrepreneurs of all time was
Aristotle Onassis — he became a billionaire in this business.

 Portability — work from anywhere in the world


How many businesses can you think of that could be packed up in a laptop computer,
moved around the world, and be started again with very little effort? This business enables
you to work from anywhere in the world — and when it’s time to move on just pack up and
take your business with you.

 Simple learning curve


An import/export business is incredibly easy to learn. You simply identify someone or a
company that needs a product. You locate that product for them in the quantity they desire,
arrange for payment, ship the products (the company with the product typically takes care
of the details) and you are done. It’s that simple.

 Very little start up capital required


Fifty years ago it would have been almost impossible to start an import/export business

4 China Wholesale Secret Program


CHAPTER 2: Benefits of an Internet Import/Export Business

without a significant bankroll (and contacts). But today — with the Internet — having
capital is not that important.

More Benefits!
Develop rich, fulfilling relationships with likeminded entrepreneurs in practically every country
of the world
 Tax benefits (consult your tax professional for specifics)
 Respect from the business community
 Instantaneous money exchanges
 No billing
 No face-to-face selling (unless you want to)
 Be a part of the global community
 Gain a deeper understanding of other cultures
 Travel abroad at deep discounts
 Work anonymously (if so desired)
 Enjoy the dynamics of an industry that is constantly changing
 Prestige — Become a renowned expert and sought after speaker
 No language barriers (translators are available when needed)
 No employees (unless you want them)
 No physical buildings, offices or storefronts required
 No understanding of currency markets required (but it’s a good thing to know)
I’ve only just touched upon the many benefits of this exciting business. Being your own boss,
having unlimited profit potential and low start-up capital requirements are perhaps the most
attractive benefits for most entrepreneurs. In the next chapter we’ll show you the hottest, new rising
trends in the import/export market and how you can position yourself to benefit from these trends.

Start Your Own Internet Import/Export Business 5


CHAPTER 3: Hot New Rising Trends

CHAPTER 3

Hot New Rising Trends


There are hot new trends to be found emerging in the import/export market. Your business will
be in a position to benefit from these trends.
One of the ways to identify emerging trends is to watch population shifts and growth. As the
population in a particular area expands so does the demand for hundreds of different products
and services.

Another way to identify hot new trends is by watching the growth of per capita income in specific
areas. When income levels rise so does the desire to spend it!

Countries like China, India, Thailand, Croatia, Brazil and Russia are importing products from the
U.S., Canada, Europe and South America in droves!

In fact, imports to China from the USA increased by more than 28% in 2004 according to the U.S.
Commerce Department.

So what does this mean for your Internet Import/Export Business?

Everything. The demand for products has never been greater — and the trend is growing at a
phenomenal rate.

There has never been a Here are the fastest growing categories according
better time to profit from an to the World Trade Organization (WTO) in 2005:
Internet-based Import/
Export business. Textiles 11%

Here is just a small Office and Telecom


sample of the products that Equipment 10% Iron
people and businesses need and Steel
Clothing 12% +27%
— and they’re willing to pay a
premium to get them: Ores
Automotive
and Minerals
Products 15%
+23%
China Consumer
Goods Fuels
The price that people +22%
and companies are willing to +19%
Ag
pay for these items will vary Products
depending on the quantities, Chemicals
+20%
+20%
frequency, quality, shipping

6 China Wholesale Secret Program


CHAPTER 3: Hot New Rising Trends

and other factors. But you will find that people will be eager to work with you because of the demand
and potential for profit.
 Plastic strapping / Black plastic strapping
 Soybeans / 50,000mt per month x 12
 Cigarettes / Mild Seven SE555 (new packing) or brand cigarettes
 Oats / Instant rolled oats, oat bran, breakfast cereals and organic cereals.
 Palm Oil / crude palm oil 55 gal
 Feathers / original American turkey feathers
 Horse Hair / Horse tail hair, yak hair and goat hair for yarns and textiles
 Cashews / 3000mt cashew and 15000mt sesame seeds
 Garlic / need garlic urgently 6.0cm+, loose, 9kg cartons
 American Rice / 2000 MT x 12 months
 Sesame seed oil / any quantity
 Apples / all kinds of fruits including apple, pear and more
 Garden Equipment / Garden tools & wooden garden tools & equipments
 Dried Rosehips / Any quantity
 Gas-powered trimmers / All sizes / crates of 6
 Also, business equipment, toys, automobiles, DVDs, jeans, tee shirts, beer, gold, designer
clothes and handbags, safety vests, security equipment, toiletries, herbs, ginseng, zircon
sand, quartz watches, polyester resin, glycerin, sulphur, playing cards, PS2 parts, and
thousands more!

India
 Soybeans / 50,000mt per month
 Cigarettes / generic
 Garlic / 9kg cartons
 American Rice / 5000 MT
 Raw wool / 40Ft Container C. I. F at any port at New Mumbai, India
 Apples / Will negotiate quantity
 Garden Equipment / garden tools
 PVC resins / bulk
 Iron Ore / 63.5% iron ore fines - Quantity 60,000 lbs x 12 months
 Nokia Mobile Phone accessories / Nokia & Sony models of Mobiles
 Dried Rosehips / All quantities
 Gas-powered trimmers / all sizes
 Bricks / Kiln Inlet ISO Shape Bricks 620
 Bicycles / BMX, children & MTB models
 Rechargeable batteries / Lithium Ion Rechargeable battery
PP29E11146, 3.7 V 1400mAh no.1CR17670

Start Your Own Internet Import/Export Business 7


CHAPTER 3: Hot New Rising Trends

 Titanium wire / All gauges


 Turbine engines / 2 to 3 MW steam turbine, 480 V, 60 hz, 3ph Inlet steam 250 psi@500 deg F,
non condensing type.
 Pen torch / Need to buy blinking torch – 30000pcs
 Cable TV Receivers / Cable TV receiver with pvr has HDD (40gb/60gb/80gb)
 Antennas
 LED Torches / 300 to 500 pieces of small white LED lamp Key chains having 10,000 MCD
 Bamboo fiber / Regular bamboo fibers
 Blankets / Acrylic mink blankets in size 220 cms x 240 cms weight 4kgs
 Herbal tea / High quality teas, green tea, black tea, ice tea, ginger tea, lemon tea, herbal tea
and slimming tea
 Raw tobacco / Raw tobacco and processed tobacco
 Also, business equipment, jeans, tee shirts, beer, gold, designer clothes, toiletries, herbs,
ginseng, polyester resin, glycerin, computer parts, and thousands more!

South Korea
 Egg powder (animal feed) / All quantities
 Olive oil / 500 MT
 Yellow Corn / 5000 bsh x 12
 Mushrooms / All varieties
 Yucca / 5 kilo containers
 Cosmetics / Top brand cosmetic sample as sk2, Lancome, Dior, Estee Lauder, Mac, etc
 Nose trimmers / all types
 Plywood / 4x8 / pallets
 Granite / Top grade unpolished India black slabs
 Wallpaper / wallpaper made from natural resource
 Low density F-board / odd sizes like 22 x 28, 23 x 36, 25 x 40,
 Nokia handsets / small quantities
 iPod batteries / all quantities
 Wi-Fi light switches / high grade
 Bluetooth headsets / new only
 Used cellphones / 100 bx
 Frozen seafood / All types, packaging and quantities
 Organic fruit juice / not frozen
 Dairy products / All types
 Chicken meat / cleaned and processed only. Must pass inspection
 White sugar / All grades and quantities
 Wine / All varieties

8 China Wholesale Secret Program


CHAPTER 3: Hot New Rising Trends

 Beer in cans / American only


 Canned tomatoes / All types, packaging and quantities
 Dried squid / fresh and frozen / all quantities
 Also, business equipment, jeans, tee shirts, computer parts, printing equipment, paper,
lumber, cable, floating glass, toys, noodles, urchins and thousands more!

Thailand
 Wire mesh / Black annealed wire Bwg 18 = 50 KG/coil = 8 containers @ 25 tons each
 Insulation / All type of heat shrinkable tubes and insulation material
 Rainwear / All types like gents black, ladies misc design and prints, children’s umbrella,
fancy umbrella, rainwear of all types and uses
 Hair clips / All shapes, colors, sizes and quantities
 Footballs / football ball number 4-5 and basketball ball number 7 - 20 containers
 Platinum / High quality high fashion products
 Palm oil / crude palm oil
 Herbs / All types especially organic
 Zinc ingots / zinc bromide byproduct to manufacture zinc bromide
 Computers / All brands and makes
 Mobile phone parts / All brands and makes (only new)
 Shortening / Organic Shortening
 Also, business equipment, paper, lumber, cable, toys, noodles, urchins, fresh fish, crabmeat
and thousands more!

Europe
 BAT Cigarettes / Marlbro red and Marlbro light in big quantity
 Cocao nibs / All quanities
 Frozen broccoli / IQF (frozen) vegetables
 Wheat Milling Machine
 Almond kernels / Large quantities
 Used tractors / All makes, models, brands and year
 Palm Oil / Large quantities
 Barley (for animal feed) / USA grains
 Soya / Soya bean milk quantity:5 FCL In bulk
 Fishmeal / All quantities
 Hydroponics grow lamps
 Soy oil / All types and quantities
 Tea / Fresh and organic
 Herbs / gymnema sylvsetre leaves
 Peanuts / red skin peanuts

Start Your Own Internet Import/Export Business 9


CHAPTER 3: Hot New Rising Trends

 Basmati rice / All types – bulk


 Gooseberry extracts / 1 liter containers
 Chick Peas / all shapes, sizes and grades
 Olives / All kinds of olives and olive oils
 Sunflower meal / Refined sunflower oil, 500 ton
 Razors / Razors & shaving products
 Cosmetics, perfume / All brands
 Sauna belts / top quality only
 Medical supplies / All
 Household items / All
 Colored contact lenses / Assorted sizes, colors and shapes
 Blood pressure monitors / Medical grade
 Toothbrushes / especially kids
 Also, business equipment, toys, gold, ginseng, glycerin, and thousands more!

This is only a brief sampling of the products that are needed!


The best part is you won’t need to know a lot about these products to import or export them.
You will simply need to know where to find them and be able to strike a deal in order to get them to
the end user.

Developing third world countries have an insatiable appetite


for thousands of different products and services.
But your business won’t be limited to doing business with these countries.
There are hundreds of companies in dozens of countries that need high-end luxury items, too!
Here are of some of the high-end luxury products are needed:
 Kuwait – caviar, exotic woods, jewelry, cell phones, smart cards
 United Arab Emirates – fresh crabmeat, fish, lobster, diamonds, gold bullion
 Switzerland – premium garlic, silver, platinum, organic beef, automobiles
 Brazil – cognac, premium wine, fur, diamonds, cell phones, DVD players
 Panama – digital cameras, smart cards, blank media, laptops
It is simply a matter of understanding what people and companies need and getting it to them.
If you have specialized knowledge about some of these products that’s even better. The learning
curve will be less.
But know this — there is a website on the Internet that is the fastest growing import/export portal
in the world.
In fact, this website has been in the Top 10 of total Internet traffic for two years in a row.

10 China Wholesale Secret Program


CHAPTER 3: Hot New Rising Trends

Forbes magazine awarded this website Best of the Web four years in a row!

On top of that, the site is devoted to helping importers and exporters make money and
build relationships.
The website I refer to is Alibaba.com.
In the next chapter we will show you this spectacular website in detail. You’ll understand why it
has become the number one import-export portal in the world and on the Internet!
You’ll quickly see why entrepreneurs everywhere are raving about Alibaba.com!

Start Your Own Internet Import/Export Business 11


CHAPTER 4: The Most Powerful Import/Export Website on the Internet for Entrepreneurs

CHAPTER 4

The Most Powerful Import/Export Website


on the Internet for Entrepreneurs
The playing field for entrepreneurs has changed — especially when it comes to entrepreneurs in
an importing and exporting business.

Trillions of dollars of products are


purchased, imported and exported every year.
Ten years ago, almost every import and export deal was done over the phone or by snail mail.
In some cases entrepreneurs would have to travel to countries by air, boat or rail to meet with
their importing or exporting clients.
Granted, some of that is still done today.
But in 1999 Jack Ma and a small group of entrepreneurs in Hangzhou, China had a vision for
making the process of importing and exporting products much easier.
On top of that, they understood the Internet would have to be the central focus in getting this done.
They launched a website called Alibaba.com.
The rest, as they say, is history.
Alibaba.com has become much bigger than anyone ever expected.
Alibaba.com has become the most powerful and efficient website in existence for import and
export entrepreneurs.
Here are just a few of the current statistics for this incredible website and portal.

Alibaba.com Facts
Employee Headcount
 2,400

2004 Financials
 Non-GAAP Revenue: US$68 million
 Free cash flow: US$25 million

12 China Wholesale Secret Program


CHAPTER 4: The Most Powerful Import/Export Website on the Internet for Entrepreneurs

Alibaba International
(www.alibaba.com) is Alibaba’s business-to-business marketplace for global trade.
 Registered members: 1.7 million
 Member geographic distribution: 200+ countries and territories
 Estimated 2004 transaction volume: US$1.5 billion
 Number of site listings: 1.4 million
 Alexa.com worldwide website traffic ranking: No. 28
• Alibaba.com has been ranked No.1 as the “Most Popular in International Business
and Trade” on Alexa.com, a subsidiary of Amazon.com which provides independent
website tracking data.

Alibaba China
(www.china.alibaba.com) is a Chinese-language online marketplace for the domestic China
business-to-business trade.
 Registered members: 7.1 million
 Estimated 2004 transaction volume: US$3 billion
 Number of site listings: 7.3 million

Taobao.com
(www.taobao.com) is China’s top ranked consumer marketplace.
 Registered members: 9.1 million
 Q2 2005 transaction volume (Gross Merchandise Volume or GMV): US$200 million
 Number of site listings: 10.3 million
 Alexa.com worldwide website traffic ranking: No. 26 in the world / No. 9 in China overall

Start Your Own Internet Import/Export Business 13


CHAPTER 4: The Most Powerful Import/Export Website on the Internet for Entrepreneurs

AliPay
(www.alipay.com) is China’s leading online payment system.

Paid Customers & National Sales Network


 Alibaba.com: Currently, more than 100,000 businesses in China pay between
US$250-US$10,000 per year for Alibaba.com’s online marketing services. Most are small
and medium-sized enterprises (SME’s)
 Taobao and AliPay: Taobao and AliPay services are currently free to all users
 Sales force: In China, Alibaba.com maintains a national direct sales force of more
than 1,000 sales and service specialists, serving and training China’s exporters and domestic
traders in e-commerce
Taobao.com (a subsidiary) is China’s top ranked consumer marketplace with 9.1 million
members! That is huge!

But if you think that’s great just keep in mind that Alibaba.com is just a babe. Alibaba.com has
only been live for three years.

Yahoo! recently entered into a long-term relationship with Alibaba.com to join forces in China.

Alibaba.com is here to stay!


Jack Ma, Alibaba.com founder and CEO, was asked recently what he thought about eBay:

“eBay thrives elsewhere but may falter in China. eBay may be a shark in the ocean, but I am a
crocodile in the Yangtze River. If we fight in the ocean, we lose - but if we fight in the river, we win.”

Where eBay is more focused on consumer auctions, Alibaba is more focused on entrepreneurs,
and importers/exporters in particular.

But eBay and Alibaba.com members are not at each other’s throats as it may appear.

In fact, Alibaba.com participated in “eBay Live 2005” in San Jose, California last year.

Thousands of eBay members are also Alibaba.com members.

What’s more, entrepreneurs like Steve Gibson (CEO/Skyabove) are using Alibaba.com on a daily
basis for their sourcing needs.

Here is what Steve said about his relationship with eBay and Alibaba.com

“We sell jewelry and consumer electronics products in our eBay store. Running an eBay business
is time consuming. We spend the majority of our time looking for new products to sell. Alibaba has
been like godsend. So far we haven’t had an incident that we cannot find products that we look for on
Alibaba.com. Alibaba is perfect for us!”

And there’s more…

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CHAPTER 4: The Most Powerful Import/Export Website on the Internet for Entrepreneurs

Alibaba.com Awards and Honors


Alibaba.com is the only import-export marketplace named “Best of the Web” four years in a row
by Forbes Magazine . The site has also been selected as a “Top Website for Entrepreneurs” by U.S.-
based Entrepreneur magazine and the most popular B2B website by readers of the Far Eastern
Economic Review, a leading financial weekly magazine published by Dow Jones in Asia.
Amazon.com subsidiary Alexa (www.alexa.com) ranks Alibaba the world’s most popular site in
the categories of Import-Export and International Business and Trade. Alexa also ranks Taobao.com
as China’s most visited auction marketplace and one of the top 30 websites in the world, ahead of all
other e-commerce sites in China.
Jack Ma, Founder, founder and CEO of Alibaba.com was named a Young Global Leader by the
World Economic Forum in 2005.

Alibaba.com Investors
SOFTBANK Corporation
SOFTBANK Corporation (Tokyo Stock Exchange: 9984) is one of the world’s Internet
leaders. Through its ownership positions in more than 300 Internet companies and its
unique, global approach to building Internet enterprises, it is able to realize
unprecedented synergies among its group of companies.

Fidelity Capital
As the leading global money management firm with over $900 billion under
management, Fidelity Investments goes to great lengths to understand the companies
in which they invest our clients’ money.
Fidelity’s entrepreneurial team of professionals is able to reach investment decisions
quickly while preserving the independent, personal nature of the venture process.

Granite Global Ventures


Granite Global Ventures is a technology-focused investor sponsored by Venrock
Associates, TIF Ventures of Singapore, and U.S. Bancorp Piper Jaffray. It invests in
expansion stage companies in the software, communications, and healthcare
industries. Through offices in Menlo Park, California; Singapore; and Shanghai, Granite
Global Ventures and its affiliates are well positioned to assist portfolio companies to
generate business opportunities in the U.S. and Asia. For more information, visit the
Granite Global Ventures Web site at http://www.ggvc.com.

Venture TDF Pte


Ltd. of Singapore
Venture TDF is a venture capital fund management company in Singapore, which was
founded in October 1995. It currently has approximately US$400 million under direct
and indirect management, investing exclusively in technology companies. Venture
TDF’s goal is to assist talented entrepreneurs build world-class technology companies.

Start Your Own Internet Import/Export Business 15


CHAPTER 4: The Most Powerful Import/Export Website on the Internet for Entrepreneurs

Transpac Capital
Transpac Capital is one of the oldest, largest and most prominent private equity
investment firms in Asia. Transpac Capital has invested in over 190 companies in East
Asia and the United States. The company is headquartered in Singapore and has offices
in China, Hong Kong, Indonesia, Malaysia, the Phillipines, Taiwan, Thailand and the
United States.

Alibaba.com is a solid company with a bright future. More important, there is still time to get in
on the action and make a lot of money fast.
Entrepreneurs are joining in droves because it’s so easy to get into the import/export business
with a portal like Alibaba.com.
More than 300,000 people visit the site every day. Most of the people who come to the site are
global buyers and importers looking to find and trade with sellers in other countries.
Importing and exporting is the fastest growing business sector in the world… and you can be a
part of it!

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CHAPTER 5: Google and other Monster Traffic Generators

CHAPTER 5

Google and other Monster Traffic Generators


One of the keys to selling imported or exported products on an Internet website is targeted traffic.
If you can drive qualified traffic to your website without a huge expense – you have a literal
goldmine at your fingertips. This is especially true when it comes to reselling imported or exported
products on a website.
This section is devoted to the search engine Google — and for good reason.
Google generates massive targeted searches everyday. We will show you Google in all its glory,
and what this means for you and your business.
We will also cover some of the other monster traffic generators like Yahoo!, eBay, Amazon.com,
MSN, AOL and more!
When you gain a deeper understanding of how Google works and how it can deliver unfathomable
targeted traffic to your site and ventures — it will mean astronomical profit opportunities.
We are confident this information will help your online business and bring big bucks to your
pockets for years to come.

All About Google


What does “Google” mean?
The name “Google” is derived from the word “googol”. The word googol was coined by Milton
Sirotta. Milton was anephew of American mathematician Edward Kasner.
According to Wikipedia a googol is a number represented by a 1 followed by 100 zeros. A googol is
a very large number. There isn’t a googol of anything in the universe — not stars, not dust particles,
not even atoms!
Google’s use of the term reflects their mission to organize the world’s immense information pool
and make it universally accessible and useful.

Google Facts
 Google.com is one of the 5 most popular sites on the Internet and is used around the world
by millions of people
 Google is the #1 search engine in the Argentina, Australia, Belgium, Brazil, Canada,
Denmark, France, Germany, India, Italy, Mexico, Spain, Sweden, Switzerland, U.K., U.S.
(Nielsen/NetRatings 6/05, based on total number of unique visitors)

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CHAPTER 5: Google and other Monster Traffic Generators

 Global unique users per month: 380 million (Nielsen/NetRatings 4/06)


 112 international domains
 Global audience: More than 50 percent of Google.com traffic is from outside the U.S.
 More than 1.6 billion web pages indexed
 255 million unique searches per day

Business Model
Google generates revenue primarily through two programs: highly targeted advertising and
online search services.

1) Google AdWords for Advertisers


Google offers a highly effective advertising program that is widely recognized as one of the Web’s
most efficient advertising vehicles.
 Pricing – Auction based pricing based on the value (cost-per-click or CPC) an advertiser
assigns to particular keywords. An ad’s position on the page is determined by a combination
of the CPC and the click-through rate (number of times the ad is clicked on by users) so that
the most relevant ads are displayed more prominently. The cost of creating an account is $5
and there is no minimum ad spend required.
 Technology – Prices for some clicks are adjusted based on their expected value to help
ensure better performance for advertisers. An automated discounter keeps the cost of each
click at the lowest amount possible in order to hold its position above a competitor’s ad.
Other options include ad targeting by location and numerous tools for optimizing accounts,
including a keyword suggestion tool and daily budget management.
 Format – Messages appear adjacent to web search results on Google.com and partner sites.
Labeled as “sponsored links,” they may appear on targeted content pages across the web.
 Targeting – Based on advertiser selected keywords or sophisticated content analysis
algorithms, so ads always appear in context with other information on the page.
 Support – Two options: Advertisers sign up online and manage their own accounts, which
are activated with a credit card. For larger advertisers, a full service account team sets up
accounts, designs campaigns based on the advertiser’s defined metrics and then monitors
creative and click-through rates to continuously optimize those campaigns.
 Customers – Recent advertisers include: Sony, Cisco, Alamo Car Rental, Ameritrade,
Amazon.com, Canon, Disney, General Motors, L.L. Bean, Nordstrom, Sears, Smith &
Hawken, Sprint, Volvo and Xerox.

2) Google AdSense and Web Site Services


The objective of Google’s AdSense program is to serve relevant ads on search result and content pages.
 Technology – Innovations include the ability to target relevant advertising based on
keywords provided by a searcher or to dynamically analyze content and select relevant ads
to display on a page.

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CHAPTER 5: Google and other Monster Traffic Generators

 Support – Two options: (1) Publishers can manage their own accounts, which are activated
through an online application process and implemented by simply cutting and pasting
some HTML onto their web pages. (2) A dedicated sales team customizes programs for sites
receiving more than 20 million page views per month.
 Customers – USATODAY.com, ABC.com, Forbes.com and 60% of the comScore Media
Metrix top 100 sites, as well as thousands of other specialty content sites.
Google Search Services enable publishers to search the content on their website — this is useful
to a publisher’s audience, readership and subscriber base because it allows people to search a targeted
pool of content. The search results can also be used to generate revenue with the AdSense program.
 Technology – Google search is based on a continuously evolving set of technologies that
offer innovations in every aspect of information retrieval and provide users with the most
relevant results.
 Support – Hosted by Google, with results customized to customer’s specifications. Results
available via HTTP and can be formatted in XML or Google’s proprietary protocol.
 Updates – Conducted on a regular basis to ensure fresh content.
 Reporting – Reports on daily number of traffic, top queries, top keywords searched, and
other information.
 Indexing – Billions of pages, the largest index on the web.
 Features – Searches can be narrowed to a specific domain/subdomain or a specific
language. Google also supports OR operators, keyword exclusion and phrase searching if
quotation marks are used.
 Customers – Washingtonpost.com, AOL/Netscape, Palm, Fujitsu NIFTY (Japan), NEC
BIGLOBE (Japan), NetEase (China),Yam.com (Taiwan), Vodafone Global Platform and
Internet Services Group (U.K.), Retivision (Spain), Sapo (Portugal), and Virgilio (Italy).
The Google Search Appliance is a scalable device that provides searches across individual
websites and/or company intranets.
 Technology – Google search is based on a continuously evolving set of technologies that
offers innovations in every aspect of information retrieval and provide users with the most
relevant results.
 Delivery – Hosted at the customer’s location on the Google Search Appliance, with results
customized to customer’s specifications. Three models offer search across any size
collection up to 15 million documents.
 Updates – Crawls available on a schedule set by the customer. Password protected or secure
pages can be indexed in most cases. Google’s caching technology makes it possible for users
to access pages even if the hosting server is busy or down.
 Reporting – Reports on daily number of traffic, top queries, top keywords searched, and
other information.
 Indexing – Customers can elect to offer different segments of their index to different users
(e.g., by language, country, etc.)

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CHAPTER 5: Google and other Monster Traffic Generators

 Features – Searches can be narrowed to a specific domain/subdomain or a specific


language. International language support enables search over documents in the following
languages: Chinese (Simplified), Chinese (Traditional), Czech, Danish, Dutch, English,
Estonian, Finnish, French, German, Greek, Hebrew, Hungarian, Icelandic, Italian, Japanese,
Korean, Latvian, Lithuanian, Norwegian, Polish, Portuguese, Romanian, Russian, Spanish,
Swedish. Google also supports OR operators, keyword exclusion and phrase searching if
quotation marks are used. Partners can set a specific URL or set of URLs to be returned at
the top of a list of returned queries.
 Support – 24/7 technical support
 Customers – PBS, The World Bank, Procter & Gamble, Cisco Systems, Boeing, Stanford
University, Nextel and Kaiser Permanente
Google Wireless Services delivers search results to Personal Digital Assistants (PDA) wireless
phones and other mobile devices.

Google Technology Overview


Google is endeavoring to build the “perfect search engine”. The co-founder of Google Larry Page
defined the “perfect search engine” as something that “understands exactly what you mean and gives
you back exactly what you want.”

That’s a lofty goal — but many people believe no one does search better than Google.

Google has also developed its own serving infrastructure and the breakthrough PageRank™
technology. Combined these have changed the way searches are conducted on the Internet.

Google’s developers realized that providing the fastest, most accurate results required a different
kind of server architecture..

Most search engines use several large servers to handle searching tasks but this approach often
slows down during peak loads. Google on the other hand — simply linked PCs to quickly find each
query’s answer.

This innovation (linking PCs) paid off in faster response times, greater scalability and lower costs.

Other search engineshave since copied this approach, but Google is continually working on their
back-end technology to make it even more efficient.

The software behind Google’s search technology is also revolutionary. It conducts several
simultaneous calculations requiring only a fraction of a second.

Most of the other top search engines rely on how often a word appears on a web page.

Google uses PageRank™ to examine the link structure of the web and determines which pages are
most “important”. Then the software conducts hypertext-matching analysis to determine which pages
are relevant to the specific search being conducted. It all sounds very complicated and sophisticated.
But it is very logical and simplistic. By simply combining the overall importance and query-specific
relevance, Google is able to put the most relevant and reliable results first.

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CHAPTER 5: Google and other Monster Traffic Generators

PageRank™ Technology
 PageRank™ measures the importance of web pages by solving an equation of more than 500
million variables and 2 billion terms.
 But instead of counting direct links, PageRank™ interprets a link from one page to another
page as one vote..
 PageRank™ then determines a page’s importance by the number of votes it receives. It’s a
simple and logical way to determine the importance of a particular web page.
 PageRank™ also considers the importance of each page that casts a vote. Web pages are
considered to have greater value if they cast a vote, thus giving the linked page greater value.
 The end result is important pages receive a higher PageRank™ and these pages appear
prominently in the search result pages. Google’s technology uses the “collective intelligence”
of the web to determine a page’s importance.
 There is no human involvement or manipulation of the results, which is why users have
come to trust Google as a source of objective information untainted by paid placement.

Hypertext-Matching Analysis
Google analyzes the actual content on a web page too.
However, instead of scanning for page-based text (which can be manipulated by site publishers
through meta-tags), Google’s technology analyzes the full content of a page and also factors in fonts,
subdivisions of content and the precise location of each word. This is another reason why Google’s
search technology is so effective.
But that’s not all — Google also analyzes the content of “neighboring web pages” to ensure the
results returned are the most relevant to a user’s query.
Google pioneered the first wireless search technology for on-the-fly translation of HTML to
formats optimized for Wireless Application Protocol (WAP), i-mode, J-SKY, and EZWeb.
Google provides its wireless technology to AT&T Wireless, Sprint PCS, Nextel, Palm, Handspring,
and Vodafone, among others.

Life of a Google Query


A typical Google search query usually takes less than a half a second., It involves a number of
steps that must be completed before results can be delivered to a person seeking information.

Google 1. The web server sends the query to the index


servers. An index server is similar to the index in
Query Web the back of a book — it tells which pages contain
Server the words that match the query.
Index
Servers

Google 3. The search


results are
User returned to
the user in a 2. The query then travels to
split second. the doc servers, which actually
Docs retrieves the stored documents.
Snippets are generated to
Servers describe each search result.

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CHAPTER 5: Google and other Monster Traffic Generators

Using Google to Generate Monster Traffic to Your Website


There are two main ways of utilizing Google to generate monster traffic to your Website.

1) Website URL submission into the Google index


This may be the most overlooked aspect of tapping into the power of Google — and it’s free!
You simply submit your website URL into Google’s database. If accepted (and most sites are)
your website will be scheduled for a “crawling” by a Google spider. Once your site is
“crawled” it will be added into the Google index database.
When a user searches Google the search results will “pick up” the “meta tag” keywords and
description that are built in your website code (HTML, PHP, FrontPage, etc.).
For example: If some searches for “Main Street Imports” and those keywords are used in
your website meta tags — that page will appear.
That doesn’t mean this page will necessarily appear on the first search result page. There
may be thousands of other people and companies that have used these exact keywords.
Therefore selecting the right keywords, phrases and description for your site is of the
utmost importance.

2) Purchase targeted keywords and phrases with Google AdWords


This is perhaps the most popular tool for generating monster traffic to your website with Google.
Google AdWords enables you to “bid” on and purchase specific, targeted keywords and
phrases. The cost for each keyword or phrase varies depending on popularity and availability.
When a user searches Google utilizing one of the keywords or phrases that you have
purchased — your advertisement will appear on the right hand side of the search result
pages. You will see these listed vertically on the right hand side of the search result pages.
There are typically 8-10 Google AdWord advertisements displayed on each search result page.
For example: If a user searches for “Persian rugs” and you own that phrase your AdWord
advertisement will be featured at the top of the vertical list.
You can see why thousands of entrepreneurs are bidding on tens of thousands of keywords
and phrases everyday!
A top Google AdWord advertisement could generate thousands of click thrus to your website
everyday — or in some cases hundreds of thousands, or even millions!
It’s important to remember that Google is searched more than 255 million times a day!

Using Other Monster Traffic Generators


In addition to Google, there are hundreds of other top search engines, portals and websites that
can generate monster traffic to your website.
Granted, advertising on hundreds of search engines, portals and high traffic websites can be costly.
However, in most cases you can set “caps” on the amount you are willing and able to spend —
if anything.
What’s more, you can “test” to see which search engines, portals and high-traffic websites
generate the most traffic at least expense.

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CHAPTER 5: Google and other Monster Traffic Generators

Testing is a common practice of the most successful direct marketers and entrepreneurs.
Once you have identified the best search engines, portals and high-traffic websites for your
purposes you can “roll out” very successful, and relatively inexpensive “campaigns”.

Here is a List of the 100 Top Traffic Websites


on the Internet (as of this writing):
(Courtesy of Alexa Internet)

1. Yahoo!
Personalized content and search options. Chat rooms, free e-mail, clubs, and pager.
www.yahoo.com

2. Microsoft Network (MSN)


Dialup access and content provider.
www.msn.com

3. Google
Enables users to search the Web, Usenet, and images.
www.google.com

4. Baidu.com
http://www.baidu.com

5. QQ.com
http://www.qq.com

6. MySpace
http://www.myspace.com

7. Sina.com
http://www.sina.com

8. Yahoo! Japan
http://www.yahoo.co.jp

9. 163.com
http://www.163.com

10. eBay
http://www.ebay.com

11. Sohu
http://www.sohu.com

12. Yahoo! China


http://www.yahoo.com.cn

13. Live.com
http://www.live.com

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CHAPTER 5: Google and other Monster Traffic Generators

14. Microsoft
http://www.microsoft.com

15. Amazon.com
http://www.amazon.com

16. YouTube
http://www.youtube.com

17. Wikipedia
http://www.wikipedia.org

18. Passport.net
http://www.passport.net

19. Blogger.com
http://www.blogger.com

20. Google UK
http://www.google.co.uk

21. Taobao.com
http://www.taobao.com

22. Google Japan


http://www.google.co.jp

23. BBC Newsline Ticker


http://www.bbc.co.uk

24. Orkut
http://www.orkut.com

25. Google Germany


http://www.google.de

26. Go
http://www.go.com

27. Naver.com
http://www.naver.com

28. CNN
http://www.cnn.com

29. CraigsList
http://www.craigslist.org

30. Alibaba.com
http://www.alibaba.com

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CHAPTER 5: Google and other Monster Traffic Generators

31. Tom.com
http://www.tom.com

32. Wretch
http://www.wretch.com

33. RapidShare
http://www.rapidshare.de

34. The Internet Movie Database


http://www.imdb.com

35. AOL
http://www.aol.com

36. eBay UK
http://www.ebay.co.uk

37. Mixi
http://www.mixi.jp

38. Google Espana


http://www.google.es

39. 3721
http://www.3721.com

40. Flickr
http://www.flickr.com

41. Xanga
http://www.xanga.com

42. SOGOU.com
http://www.sogou.com

43. Google Turkey


http://www.google.com.tr

44. Megaupload
http://www.megaupload.com

45. Friendster
http://www.friendster.com

46. Rakuten
http://www.rakuten.co.jp

47. Google France


http://www.google.fr

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CHAPTER 5: Google and other Monster Traffic Generators

48. Google Canada


http://www.google.ca

49. Mail.ru
http://www.mail.ru

50. Yandex
http://www.yandex.ru

51. Nate.com
http://www.nate.com

52. Daum
http://www.daum.com

53. Livedoor
http://www.livedoor.com

54. Geocities
http://www.geocities.com

55. Hi5
http://www.hi5.com

56. Google SA
http://www.google.com.sa

57. PC Home
http://www.pchome.com.tw

58. China Ren


http://www.chinaren.com

59. Newsgroup.la
http://www.newsgroup.la

60. Google India


http://www.google.co.in

61. LiveJournal
http://www.livejournal.com

62. Soso
http://www.soso.com

63. eBay Germany


http://www.ebay.de

64. Thefacebook
http://www.thefacebook.com

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CHAPTER 5: Google and other Monster Traffic Generators

65. Apple Computer


http://www.apple.com

66. Rediff.com
http://www.rediff.com

67. Zhongsou
http://www.zhongsou.com

68. Comcast.net
http://www.comcast.net

69. Discuss.com
http://www.discuss.com.hk

70. Google Mexico


http://www.google.com.mx

71. Photo Bucket


http://www.photobucket.com

72. ImageShack
http://www.imageshack.com

73. The New York Times


http://www.nytimes.com

74. eBay China


http://www.ebay.com.cn

75. Mop.com
http://www.mop.com

76. Fotolog
http://www.fotolog.com

77. SourceForge
http://www.sourceforge.com

78. About
http://www.about.com

79. CNET.com
http://www.cnet.com

80. Xinhuanet.com
http://www.xinhuanet.com

81. Google Italy


http://www.google.it

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CHAPTER 5: Google and other Monster Traffic Generators

82. Dell Computers Online


http://www.dell.com

83. Mojo Works


http://www.mojoworks.com

84. Soufun.com
http://www.soufun.com

85. China.com
http://www.china.com

86. Uwants.com
http://www.uwants.com

87. FC2
http://www.fc2.com

88. Free
http://www.free.fr

89. MapQuest
http://www.mapquest.com

90. StatCounter
http://www.statcounter.com

91. VNET.cn
http://www.vnet.cn

92. Google Australia


http://www.google.com.au

93. Weather.com
http://www.weather.com

94. Goo
http://www.goo.ne.jp

95. Adobe
http://www.adobe.com

96. CNNIC
http://www.cnnic.cn

97. Digg
http://www.digg.com

98. 21CN.com
http://www.21cn.com

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CHAPTER 5: Google and other Monster Traffic Generators

99. CMFU
http://www.cmfu.com

100. HiNet
http://www.hinet.net

Four Ways to Generate Monster Traffic


From High Traffic Websites
1) Advertise
Almost every high-traffic website, search engine and/or portal accepts all levels of advertising,
with the exception of shopping sites (like Wal-Mart). Advertising can take the form of simple text
links, banners, graphic buttons, images or pop-ups, and video.

2) Partnerships and Affiliate Programs


Most search engines, portals and high-traffic websites have partnership and affiliate programs
available. A partnership program would include cross marketing, link exchanges and/or promoting
each other’s properties. Affiliate programs are typically when you sell someone’s products or services
on your website and in exchange receive a commission or promotional credit.

3) Link Exchanges
Link exchanges are the process whereby you promote a search engine, portal or high-traffic
site’s products and or services on a website. In turn the reciprocating property does the exact same
thing for you. In many cases it’s simply an agreement to a graphic image or logo that is assigned to a
unique URL.

4) In kind services (usually content or images)


In kind exchanges is an agreement whereby a search engine, portal or high traffic website agrees
to promote your website or company in exchange for an article, content or images that you provide.
You now have a basic understanding of how Google works. This will help you leverage Google’s
products and drive traffic to your website with a view to increasing sales of imported products.
We also included links to the Top 100 Highest Traffic Websites and Portals on the Internet and
showed you how to create partnerships with these sites and leverage their traffic for your benefit.
In the next chapter we’ll begin laying the foundation for your successful import/export business.
We’ll explain all of the nuts and bolts for getting your business off to a fast, profitable start!

Start Your Own Internet Import/Export Business 29


CHAPTER 6: The Nuts and Bolts of an Online Import/Export Business

CHAPTER 6

The Nuts and Bolts of an


Online Import/Export Business
We have been focusing most of our attention on the incredible opportunities offered by
Alibaba.com.

But there are hundreds of different types


of import/export sites on the Internet.
We have listed many of these in the Additional Resources Section (chapters 22 and 23).
But the process of launching an online import and export business will be basically the same.
This section is designed to give you a nuts and bolts overview for starting an online import and
export business.

What Is an Alibaba.com Buyer and Seller?


 Sellers (or exporters) post his or her company information and product photos (together
with descriptions, specifications, shipping terms, etc.) on Alibaba.com.

Selling Overview
Please follow the steps below to sell your products on Alibaba.com.

1. Register
To sell or promote your products on Alibaba.com, you first need to become a member. Simply
click on the “Join Now” link on the top-right corner of any Alibaba.com page and follow the process.
Then you can promote your products to attract buyers.

2. Post Products and Selling Leads


You can add detailed specifications to your products and edit them at any time. You will also have
a Company Profile page to present a general introduction of your business. Newly posted information
will be added to the Trade Alert section and sent to interested buyers.

3. Explore Buying Leads


Browse buying requests (Buying Leads) by category or open searching.

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CHAPTER 6: The Nuts and Bolts of an Online Import/Export Business

4. Contact buyers
Once you find a potential buyer for your products, you can contact him/her by sending a
quotation.

5. Promotion Opportunities
You can also promote your business on Alibaba.com by:
 Obtaining the priority listing for products in search result listings.
 Applying for TrustPass qualification, as well as a TrustPass profile page to further
demonstrate your credibility to buyers.

Posting Products and Selling Leads


Posting your product images, specifications and descriptions on Alibaba.com increases your
exposure to buyers. On Alibaba.com, a member can post multiple products.

Selling Lead means a Trade Lead posted by a seller. It can contain product information,
availability, timelines and so forth. Trade Leads are sorted according to the date they are posted. This
makes for a highly interactive and timely method to sell your products.

Posting Trade Leads


Use Selling Tools within MyAlibaba or from other pages by clicking on the “Post Products” link in
the “Seller Tools” box.

Free members are allowed to post up to five products. Paid members can post more products and
buy extra product spaces.

Posting Products
You can post Selling Leads in “Selling Tools” within My Alibaba, or from many other pages by
clicking on the “Post Selling Leads” link in the “Seller Tools” box.

Upon publication, buyers will be able to see your Products and Selling Leads, to which they can
reply. All of the buyers’ messages will be sent to your own Message Center in MyAlibaba.

Buying Overview
Buying on Alibaba.com is easy. Follow these steps to begin your buying experience:
 If you are new to Alibaba.com, Join as an Alibaba.com member first
 Look for Products and Suppliers
 Contact Sellers after you find products
 Post Buying Leads to get instant seller quotations

Looking for Products and Suppliers


If you want to find a product, or the suppliers who produce that product, you can use either our
search function or browse by category.

Start Your Own Internet Import/Export Business 31


CHAPTER 6: The Nuts and Bolts of an Online Import/Export Business

Browsing
 Click the “Buy” tab on the main navigation bar on any page.
 You can browse the extensive product categories to find whatever you want.
 Use the filters above the listing to refine your browse.
To see the product categories, click here

Search Basics
 If you already know what you are looking for, enter the product name in a search box to start
a search.
 The results will look like this:

They will include the title, the posted date, summary, the company name of the seller, its country,
and the icon(s) denoting the membership type(s) of the seller.
 The results are sorted by relevance and by membership type.
 Use the filters above the listing to refine your search results.

Search Tips
 To refine your search results, use the filters above the listing.
 If the results are unsatisfactory, reduce the number of words (i.e. “bicycle framework”
instead of “carbon bicycle frame work”).
 Avoid keywords which are too specific or specialized (i.e. “4X4 Honda ATV”).
 Only search one product at a time.
 Don’t include a country/region’s name in your search (i.e. “shoe China”).
 Don’t include the word “buyer” or “seller” in your keyword phrase (for example:
“shoe buyer”).

Get More Accurate Search Results


 Use asterisk (*) sign: To broaden your search, use an asterisk (*) at the end of a word or
partial word. For example, “auto*” would return all postings starting with “auto”, such as
“auto” or “automobile” or “automation”, etc.
 Use quotation marks (“ “): For exact results, use quotation marks (e.g., “ac adapter”). If the
results are not satisfactory, try again without quotation marks (e.g., ac adapter).
 Use plus (+) sign: When using the operator “+” a keyword will definitely appear in the search

32 China Wholesale Secret Program


CHAPTER 6: The Nuts and Bolts of an Online Import/Export Business

results (i.e. “red+apple” will return results containing “apple,” but may not contain “red,”
although those with the word “red” will be listed first.) Please note: Do not leave any spaces
between the “+” sign and the keyword.
 Use minus (-) sign: When using the operator “-” sign, a keyword will not appear in the
search results. (i.e. “apple-red” will return all results containing “apple”, but no results
containing “red” will appear.) Please note: Do not leave any spaces between the - sign and
the keyword.
 Remember, make sure that no punctuation marks except +, -, and “ “ are included in your
keyword phrase (i.e. bearing 3000/sec).

Contacting Suppliers
Sending Inquiries
 You can send inquiries to sellers you find through browse or search. Use these steps:
 Select the checkbox beside each product or supplier you are interested in
 Click button.
 Complete the inquiry form and submit.
 If you check more than one product or supplier, your inquiries will be sent to these
suppliers simultaneously.
 Once you send out your inquiry, it will probably take sellers a few days to respond. Their
replies will be sent to your Message Center in MyAlibaba.

Send Multiple Inquiries to Products or Suppliers


 Select the checkbox beside each product or supplier you are interested in.
 Click button.
 When you are ready to make your inquiry, go to the Inquiry Basket located at the top-right
corner of each page.
 Review your selection and click “Contact Now” button.
 Complete the inquiry form and submit.
Your Inquiry Basket works like a shopping cart, thus offering buyers greater convenience. You can
add up to 38 items in your Inquiry Basket. The items in your Inquiry Basket will remain active only if
you keep at least one Alibaba.com page open. Please send your inquiries before you leave the
Alibaba.com website.

Trade Alert
Trade Alert is a customized email that delivers information and business leads directly to you.
Subscribe to Trade Alert to get the freshest business opportunities.

Subscribing to Trade Alert


If you are already an Alibaba.com member, please sign in at MyAlibaba go to “My Subscriptions,”
and click “Subscribe.”

Start Your Own Internet Import/Export Business 33


CHAPTER 6: The Nuts and Bolts of an Online Import/Export Business

Follow the instructions to set up your Trade Alert preferences. Once you have completed the
process, you will receive Trade Alerts by email as soon as new content matching your preferences is
published online at Alibaba.com.
If you are not yet an Alibaba.com member, you are strongly recommended to join Alibaba.com
and subscribe to the Trade Alert located in MyAlibaba as described above. Or, if you choose to
subscribe to Trade Alert as a non-member, please click “Free Trade Alerts” in the navigation bar of
“Trade Leads — Products — Companies.” Follow the instructions and complete the process.

Adjusting Trade Alert Settings


If you are already an Alibaba.com member, please sign in at MyAlibaba, go to “My Subscriptions,”
and click “Manage Trade Alerts.” Follow the instructions to modify your Trade Alert settings. You can
also go to the “Manage Trade Alerts” page in MyAlibaba by clicking the “Manage Trade Alerts
Preferences” link in any of the Trade Alert emails you receive at your registered email address.
If you have subscribed as a non-member, you cannot modify any setting.

Un-subscribing to Trade Alert


If you are already an Alibaba.com member, please sign in at MyAlibaba, go to “My Subscriptions,”
and click “Unsubscribe.”
Simply follow the instructions to unsubscribe. You may also unsubscribe by clicking the
“Unsubscribe” link in any of the Trade Alert emails you receive at your registered email address.
If you are not an Alibaba.com member, you can unsubscribe only by clicking the “Unsubscribe”
link in any of the Trade Alert emails you received at your registered email address.
You now have a basic understanding and foundation for doing business on Alibaba.com and
launching a profitable import/export business.
In the next chapter we’ll cover one of the most important aspects to any import/export business
— identifying the best products!

34 China Wholesale Secret Program


CHAPTER 7: How to Determine Which Products to Import/Export

CHAPTER 7

How to Determine
Which Products to Import/Export
The best way to determine which products to import or export is to look at the Trade Leads on
Alibaba.com.

The Trade Leads will tell you which products are in demand for and which products are not.

An example: There were 48,365 Selling Trade Leads and 3687 Buying Trade Leads posted on
Alibaba.com today.

That means more than 48,000 products were posted for sale and 3687 products were posted that
people or companies wanted to buy.

Both of these figures may be misleading because the quantities of these products are not mentioned.

In one case an exporter had more than one million cubic bushels of rice for sale!

In another post, a company in Mexico had more than 5,000 pounds of fresh coffee beans for sale.

Alibaba.com is one of the best sites on the Internet to determine which products to buy and sell
because the statistics are always posted on the main page.

But let’s take this one step further…

There’s another section on Alibaba.com called Hot Products. The reason these products are
“hot” is because they’re moving in a big way.

For instance, in the Hot Products section today there were more than 253 products for sale, one
of which was Dried Anchovies from China.

Another Hot Product that a company (also in China) wanted to buy was seashell ornaments
(bracelets, necklaces, and so on).

And the list goes on!

To help you even further, Alibaba.com has launched a new service called the Resources Channel.

The Resources Channel is a place where you can find essential information, education, tutorials
and discussion forums — all designed to help you become a successful importer or exporter.

Another way to determine hot products and rising trends is by subscribing to News Alerts on
Google. Whenever news is available on the topics or keywords you select you are notified by email

Start Your Own Internet Import/Export Business 35


CHAPTER 7: How to Determine Which Products to Import/Export

with a link to the story or news source. The Google News Alert service is free and scours more than
4800 top news sources. You will hear news long before your local newspaper prints it. You can
subscribe to the Google News Alert at http://www.google.com/alerts

36 China Wholesale Secret Program


CHAPTER 8: Obtaining Products from Overseas Manufacturers for the Wholesale Market

CHAPTER 8

Obtaining Products from


Overseas Manufacturers for the Wholesale Market
Obtaining products from overseas manufacturers is fairly easy to do — and especially with
Alibaba.com.

The most common reasons for obtaining products from overseas manufacturers is to wholesale
them to companies in other parts of the world.

This is another exciting aspect to running a profitable import and export business over the Internet.

Your objective is to identify companies that need specific products and then identify the
manufacturers that produce them.

This is referred to as the “wholesale side” of the import/export market.

For example: Let’s say that you identified a company in Zimbabwe that needs 900 tons of maize
every month for 12 months.

This was an actual “buying lead” on Alibaba.com this morning.

The next step would to identify a company that grows or produces maize. The company could be
located anywhere in the world — it doesn’t matter in this case.

A simple search of “selling leads” on Alibaba.com located several companies that grow and
export maize. Upon further investigation you learn that three companies are able to fulfill an order of
900 tons per month.

You would contact the company in order to obtain a price quote that includes shipping.

Once you’ve obtained this price quote you would notify the company in Zimbabwe that you
would like to submit a bid — they accept your bid and you reach an agreement.

Now arrangements will need to be made with regards to money transfers and shipping.

There are several ways to approach this but either way Aliabab.com makes it easy – and
especially with the new TrustPass Program. The TrustPass Program pre-approves companies and
obtains letters of credit and references.

In this example we used two companies (buyers and sellers) that we listed on Alibaba.com.

But believe it or not, most business people have never even heard of Alibaba.com…which makes
you — with your business expertise and knowledge — even more desirable and unique.

Start Your Own Internet Import/Export Business 37


CHAPTER 8: Obtaining Products from Overseas Manufacturers for the Wholesale Market

Let’s say, for example, that you’ve located companies in China, Australia, Brazil Egypt or United
Arab Emirates that are not familiar with Alibaba.com.

The companies that you’ve identified need certain products — in this case, dairy products.

All you need to do is search the selling leads on Alibaba.com for dairy products.

You find a company that manufactures all kinds of dairy products and is able to ship them via
refrigerated containers to anywhere in the world.

Next you check back with the companies that need dairy products and find out specifically which
dairy products they need, and how much.

Then contact the selling lead for a specific price quote that includes shipping and any other fees.

Finally, you would contact the company that needs the dairy products and you submit your bid.

But remember — you’re in the import/export business to make money — so be sure to increase
the price of your dairy product bid by at least 15%.

Obviously a 15% surcharge or commission will not be suitable for every product and every deal
that you transact.

But in this case, a 15% surcharge or commission seems to be very reasonable.

In some cases, you will be able to charge a 40% surcharge or more!

It will take some time for you to learn the specifics for each product and market you’re involved
in, but with experience, you’ll find it’s easier and easier.

Payment Transactions and Money Exchanges


Again, Alibaba.com makes payment transactions easy and in most cases very simple.

The best thing to do is to open a bank account specifically earmarked for your import/export
business.

Once the account is opened you can ask your bank representative for the wire transfer details.

[Note: If the bank representative is clueless about wire transfers then you’re at the wrong bank or
it’s too small or unable to handle international transactions.]

Top International Banks that Offer Wire Transfer Capabilities


Barclays
http://www.barclays.com

Wells Fargo
http://www.wellsfargo.com

Bank of America
http://www.bankofamerica.com

38 China Wholesale Secret Program


CHAPTER 8: Obtaining Products from Overseas Manufacturers for the Wholesale Market

CitiGroup
http://www.citigroup.com

HSBC Holdings
http://www.hsbc.com

Sumitomo Mitsui Banking Corp.


http://www.smbc.co.jp

National Australia Bank


http://www.national.com.au

Dresdner Bank AG
http://www.dresdner-bank.com/

UBS Group
http://www.ubs.com

Royal Bank of Canada


http://www.royalbank.com

Bank Leumi
http://english.leumi.co.il

Once you have an account that can accept wire transfers you can start making deals.
Most of the time a portion of the money is set-aside in a type of escrow (you’ll learn more about
this later). Escrow is a fairly common procedure when it comes to international business — and
specifically with respect to import/export businesses.
The escrow procedure protects both parties should something unexpected transpire.
For example, let’s say that you’ve completed your first deal. A portion of the money is wired into
your account. The remaining portion will be wired once the buyer receives the product.
But what if the boat carrying the product capsizes in the North Atlantic due to a horrendous
storm. The entire product onboard is lost. Who pays?
There are provisions in every import/export deal and agreement that specifically address such
unfortunate circumstance.
You can see that obtaining products from overseas manufacturers can be fun, easy and very profitable.
In the example of the buyer who was interested in obtaining maize — the profit would have
worked out as follows:

Buyer
Agrees to purchase 900 pounds of maize at 70 cents per pound ($630) for 12 months (for a total of
$7,560 plus $1,950 for shipping).

Seller
Agrees to sell 900 pounds of maize to you for 45 cents per pound ($405) for 12 months (for a total
of $4,860 plus $1,950 for shipping).

Start Your Own Internet Import/Export Business 39


CHAPTER 8: Obtaining Products from Overseas Manufacturers for the Wholesale Market

Buyer agrees to wire half of the amount that you quoted into your account ($3,780) — you in
turn wire half of the amount the Seller quoted to you ($2,430).
Buyer agrees to wire the remaining amount in full upon receipt of the first shipment (terms
obviously will vary) — which in this case would $3,780.
Your profit would calculate as follows:
Buyer Quote and Agreed Upon Purchase Price: $7,580 (+ shipping)
Seller Quote and Agreed Upon Selling Price: $4,860 (+shipping)
Your Profit: $2,720
Not bad for a couple of emails and/or phone calls!
But keep in mind this is a very small deal. There are thousands of deals like this waiting to be
completed with your name of them!
The wholesale side of any import/export business can be very profitable.
On top of that, the size of the deals can be significant.
Obtaining products from overseas manufacturers is fairly easy to do with Alibaba.com. The most
common reason for obtaining products from overseas manufacturers is to wholesale them to
companies in other parts of the world.
In the next chapter we’ll show you the secrets for reselling imported products on the Internet.

40 China Wholesale Secret Program


CHAPTER 9: Reselling Products on the Internet

CHAPTER 9

Reselling Products on the Internet


You can import products incredibly cheap and sell them on the Internet with profit margins of
200%, 400%, 600% or more!

Here’s a List of 40 Best Selling Products


Priced under $45 on the Froogle
(Google’s shopping site)

These are generally accepted prices that you could expect to pay when importing these
products in bulk:
Under $45 Import Price
Optical mouse $1.95
Crème brulee torch $7.50
Glow stick $.22
Pond pumps $8.00
Emerald ring $2.50
Chopsticks $.14
Forceps $1.95
Docking station $2.25
Cargo pants $5.00
Whey protein powder $.90 lb
Buffalo meat $.80 lb
Low rise jeans $3.40
Olive oil $6.00 gal
Running shoes $3.35 pr
Bumper stickers $.27 ea (unprinted)
Skim board $1.98
Viagra $.65 tablet/generic
Mp3 player $6.65
Lawn gnome $2.25
Vitamins $1.55 bottle
Herbs and extracts Varies

Start Your Own Internet Import/Export Business 41


CHAPTER 9: Reselling Products on the Internet

Belly button rings $1.90


Climbing shoes $2.90 pr
Ladder $4.00
Blow dryer $3.95
Hearthrug $2.00 ea
CD burner $6.25
Spa pump $12.75
Sigma lens Varies
Stationary bike $22
Flip flops $.95 pr
Gold chain Varies
Makeup $1.65 ct mascara
USB $2.85
CD writer $6.25
Aviator sunglasses $1.55
Men’s watches $2.90
Sheepskin boots $3.95 pr
Balloons $.35 dz
Money clip $.45

The profit potential for selling products like these on the Internet is staggering!
Granted, in some cases you will need to purchase bulk quantities (but not always), so you’ll want
to be sure that you can move a particular product.
There are powerful resources on the Internet available to Import/Export entrepreneurs that will
help you determine which products require that you purchase them in bulk or not.
If you’re selling into a hot market, like the products listed above, you don’t want to have a huge
stockpile or inventory.

Wal-Mart is the Largest Retailer in the World


because of Their Unique “On-Demand” Inventory and
Distribution System — Not because of Low Pricing.
The secret to success online is selling products that are already successful.
Don’t try to reinvent the wheel — or try selling products that do not have a track record.
Granted, there are a lot of products that became overnight sensations on the Internet, like iPod,
Viagra, Red Sox apparel and memorabilia, CD burners, LCD screens and Coral Calcium.
But to predict these phenomena and stockpile huge inventories would not have been prudent.
The best and most profitable way to sell products on the Internet is to import products at deep
discounts and maintain very small inventories.

42 China Wholesale Secret Program


CHAPTER 9: Reselling Products on the Internet

Always keep in mind that markets and the demand for products shift quickly.

In order to resell products on the Internet you’ll need a website where people will visit to find out
about your products and order.

There are many ways to approach this part of the import/export business but starting small and
as inexpensively as possible is always a good rule of thumb.

How to Design a Website


so It Generates the Most Possible Sales
The best examples of successful website designs are the ones that are generating sales!

Copy success.

Copy the design, layout, navigation and ordering process of the websites that are selling the most
products on the Internet.

Granted, you may not have the same budget as Amazon.com, Buy.com or Overstock.com so
duplicating these websites might appear to be difficult.

But remember, all these sites started out small.

Amazon.com consisted of less than 75 pages when it launched in 1998. Today there are
thousands of pages of reviews, product photos, content and recommendations.

You’ll want to copy the “essence” of what makes these websites so effective with respect to selling
products on the Internet.

Here are the Top 10 Websites for Shopping on the Internet


according to Alexa Internet:
Amazon.com
http://www.amazon.com

eBay (eBay doesn’t actually sell any products — but they facilitate sales – it’s still a good model)
http://www.ebay.com

Overstock.com
http://www.overstock.com

Wal-Mart
http://www.wal-mart.com

Yahoo! Auctions
http://www.yahoo.com

Target
http://www.target.com

Start Your Own Internet Import/Export Business 43


CHAPTER 9: Reselling Products on the Internet

BestBuy
http://www.bestbuy.com

Netflix
http://www.netflix.com

eBay Stores
http://stores.ebay.com

Buy.com
http://www.buy.com

What do these websites have in common?


1) White space! All of these sites surround products with a lot of white space, which makes it
easy to see the products.
2) High quality product photographs!
3) Easy Ordering and Checkout!
If you keep these 3 things in mind when you’re designing a website to sell products on the
Internet you will be light years ahead of the competition.
In one sense these sites are not good examples because they present HUGE inventories of
products.
In most cases it’s better to focus on one product or sector when you’re first starting out. This will
help to simplify your business, the importing process, and shipping orders.
It will also make it easy for your customers to place an order!

Here are 10 Successful Niche Product Websites:


Delorme Maps
http://www.delorme.com

Sunglass Replicas
http://www.sunglassreplicas.com

Vitamin World
http://www.vitaminworld.com

Body Candy (belly button rings)


http://www.bodycandy.com

Neato (blank media and CDs)


http://www.neato.com

Glenbrook Farms (organic herbs)


http://www.glenbrookfarm.com/herbs

44 China Wholesale Secret Program


CHAPTER 9: Reselling Products on the Internet

Fragrance Net (perfume)


http://www.fragrancenet.com

800-Pillows
http://www.800pillows.com

HealthyPetNet
http://www.healthypetnet.com

Christmas Ornaments
http://www.bronners.com

You don’t need to design or build websites yourself — hire freelance contractors to do it for you!
In most cases the designers and developers that you find on these sites are very reasonably priced.

Additional Website Design and Developer Resources to Help Your Business


Guru.com
http://www.guru.com

eLance
http://www.elance.com

CraigsList (Computer Services)


http://www.craigslist.com

ScriptLance.com
http://www.scriptlance.com

GetAFreelancer
http://www.getafreelancer.com

One of the best do-it-yourself website design software tools is XSitePro


http://www.xsitepro.com

In the next chapter we’ll show you how to import products for the retail market.

Start Your Own Internet Import/Export Business 45


CHAPTER 10: Wholesaling Products to Retailers

CHAPTER 10

Wholesaling Products to Retailers


There are more than 2.6 million retail gift stores in the United States and Canada, according to
InfoUSA.
The profit potential for importers is staggering!
Granted, most retail business owners prefer to purchase products from companies they’ve
worked with in the past and people they have relationships with.
But that’s true with almost every business in existence.
However, very few retail business owners will pass up the opportunity to make more money, and
that’s what you bring to the table.
Retail business owners will tell you which products they are most interested in receiving quotes for.
You can scour Alibaba.com for those products, obtain a quote from the exporting company, and
in turn submit a quote to your retailing customer.
For example, one of the largest and most successful international gift shows for retailers today
is the New York International Gift Fair. There are more than 2,800 exhibitors and 45,000 attendees.
Most of the attendees are retail business owners and chains.
New York International Gift Fair http://www.nyigf.com
Most of the attendees would be very responsive to receiving quotes for products from you.
One of the hottest product sectors in the retail industry is known as Home goods.
Home goods include home improvement products, furniture, consumer electronics and
home fashions.
The service you can provide to retail businesses is invaluable. You can obtain products for these
companies at a fraction of what they’re currently paying.
On top of that, retail business owners won’t have to replace their current product wholesalers —
which is a great selling point and a unique proposition.
If you focus on the retailer’s customer and hot products you will have more business than you
could possibly handle.
What’s more, you won’t have to compete with the importers that work with the retail giants
(unless you want to).
In most cases, the small to medium-sized retailers will be your target market.

46 China Wholesale Secret Program


CHAPTER 10: Wholesaling Products to Retailers

Here’s a list of the products that retail gift stores purchase


on a regular basis (according to RetailNet):

20-ounce tumblers (for drinking) Tortilla makers


Espresso makers Splatter screen (for cooking)
Ice cube trays Wood salad bowls
Wood handle barbeque brush Colored pencils
Sidewalk chalk Giant coloring books
Flashing necklace CD lens cleaner
Batteries Balloons
Birthday party supplies Fly swatters
Emergency rain ponchos Men’s personal electronic trimmer
Scissors Beach mat
Camping knife Hands free cell phone headset
Pet toys Painted vase

Retail News indicated recently that there are more than 22,000 products sold in retail business
around the world!

The opportunities for import entrepreneurs who want to sell products to retail business owners
are unlimited.

What’s more, you can start out small, with almost no capital, and build your business part-time.

Additional resources
Retail Industry
http://retailindustry.com

Retail Forward
http://www.retailforward.com

RetailNet
http://www.retailnet.com

Chain Store Age


http://www.chainstoreage.com

The Retail Bulletin (UK news)


http://www.theretailbulletin.com

Start Your Own Internet Import/Export Business 47


CHAPTER 10: Wholesaling Products to Retailers

Retailer Management
http://www.retailernews.com/archives.html

America’s Gift Show (excellent online resource for importers and retailers)
http://www.americasgiftshow.com

NRF Annual Conference and EXPO (The BIG Retail Event)


http://nrfannual06.expoexchange.com

Approaching retailers is easy! The best prospects will be the retailers that already purchase
products from importers, or wholesalers.
In addition to the resources listed above you can also contact mailing list brokers that specialize
in managing lists of retail business owners. A quick search on the Internet or Yellow Pages will
produce hundreds of potential brokers.
Once you have obtained a mailing list of retail business owners you can send them a simple letter
of introduction. Almost everyone in business today has a website. You can include your website
address in your letter. If you don’t have a website that won’t be a problem. You can build and post one
on the Internet in no time flat. We’ve included some resources below to help you do just that.
Here is a sample letter that could be used when contacting retail business owners:

Premium Gift Wholesale Co.


361 Ocean Drive
Suite 322
Miami FL 33139

Date

Ms Jessica Doe
XYZ Retail
1111 Jackson Blvd.
Kansas City KS

Dear Ms Doe:
My name is John Brown. I’m the founder and President of the Premium Gift Company in
Miami, Florida.
We import thousands of products and gift items from around the world, and wholesale them to
retailers at deep discounts.
I’ve been to your website — so I’m familiar with your products and customers.
Would you be open to reviewing some of our products and prices?
No one will call you (unless you want us to)!

48 China Wholesale Secret Program


CHAPTER 10: Wholesaling Products to Retailers

You can submit your request for specific products/prices via our website, email, fax or 24 hour
voice mail system.
We’ve been in business since 2002 — and we currently serve 103 retail businesses just
like yours.
We would love an opportunity to be of service to you!
Please call, write or stop by our website today.
Thank you.
Sincerely yours,

John Brown
Premium Gift Wholesale Co.
http://www.premiumgiftwholesale.com
(800) xxx xxxx
jbrown@premiumgiftwholesale.com

P.S. We offer free shipping to your business for the first 6 months. That means there are NO
shipping charges whatsoever for the first 6 months. All the more reason to give us a try!

In the next chapter we’ll show you how to become an import middleman!

Start Your Own Internet Import/Export Business 49


CHAPTER 11: How to Become an Import/Export Middleman

CHAPTER 11

How to Become an Import/Export Middleman


We’ve discussed obtaining products from overseas manufacturers for the wholesale market in
Chapter 8.

But there’s another twist to an import/export business — and that is becoming a “middleman.”

This is the part of the business that enables you to compete with other importers and exports for
major multimillion-dollar deals.

The learning curve may be a bit steeper than other aspects of an import/export business — but
the rewards and benefits are greater as well.

Many countries and companies have insatiable appetites for thousands of different types of products.

For example, there are companies that import millions of cubic tons of soybeans, tea, coffee,
corn, wheat, steel, coal, copper, zinc and aluminum.

Often times the purchasing directors place orders directly with manufacturers in other parts of
the world.

The problem is, although they purchase millions of cubic tons of product, in some cases they
need more — a lot more!

That’s where you come in!

You will simply identify the companies that are importing the largest quantities of products and
then find secondary suppliers for them.

For instance, listed as a Buying Lead on Alibaba.com is a company in Singapore interested in


25,000 metric tons of Wheat (Durum).

Singapore imports tens of millions of metric tons of wheat every year. They’re buying it from someone!

All you need to do is locate a company that is able to fulfill this request.

You could work on a retainer or commission basis to begin with if you don’t have the capital to
“float” deals this size.

In other words, you would locate a company that is able and willing to fulfill an order of this size
(25,000 metric tons per month). Then you would contact this company and tell them you have a
prospective buyer in Singapore. If they’re interested in submitting a quote they will need to “retain”
your services.

The exact wording of a proposal will vary.

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CHAPTER 11: How to Become an Import/Export Middleman

But most companies want to move product as quickly and trouble free as possible.
You’ll find that many companies will be eager to work with you.
But as you can see — this is a great income opportunity.
On the other hand, if you do have the capital to float deals like this you would simply obtain a
quote from the manufacturer or producer for 25,000 metric tons of wheat (durum).
You would submit this quote (with a 15% premium added — your profit) to the interested party.
If the quote were accepted you would arrange for payment and delivery.
It’s that simple!
What’s more, money flows very quickly in the import/export industry, unlike hundreds of other
industries.
An import/export middleman simply facilitates large product orders by bringing buyers and
sellers together and making a “premium” or percentage of the deal.

Here’s a Short List of MAJOR Import and Export deals


(tens of millions of dollars).
All of the middlemen facilitating these deals earn a percentage.

Crude Palm Oil – Mainland China


Soybean Oil – Mainland China
Wheat (durum) India, China, Pakistan, Malaysia
Corn – Brazil, China, Singapore, India, Australia, Egypt, South Africa
Fishmeal – China, India, Japan, Pakistan, Thailand, Korea, Chile, Argentina
Ma Huang Extract – Mexico
White Rice – Malaysia, China, Japan, UK
Peanuts, Poland, Thailand, UAE
Olive Oil – Portugal
Saw Palmetto Extract – China
Black Tea – Iran
Cashews and Almonds – India
Palm Oil – United States
Bananas – Turkey
Soybean Meal – Bangladesh
Copper – China, Japan, India
Steel – China, Mexico, India, Indonesia
Crude Oil – all countries
Natural gas – all countries
The list of products goes on and on!

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CHAPTER 11: How to Become an Import/Export Middleman

The opportunities for import/export middlemen have never been greater.


Once again Alibaba.com is a great resource to help you identify these deals. But Alibaba.com is
not the only resource! There are dozens of websites to assist you in getting your import/export
venture off the ground.

Additional Resources to Help You


Become An Import/Export Middleman
InfoBanc / Indian Bazaar
http://www.infobanc.com/

Global Sources
http://www.globalsources.com

Thomas Global Register


http://www.thomasglobal.com

FITA
http://fita.worldbid.com

ImportEurope
http://www.importeurope.com/

ForeignTrade.com
http://www.foreign-trade.com/

Export Bureau
http://www.exportbureau.com/

Berlinkauf – Trade Leads


http://www.berlinkauf.com/

Muslim Trade Network


http://www.muslimtrade.net/b2b/

Export Zone USA


http://www.exportzone.com/

Trade India
http://www.trade-india.com/

In the next chapter we’ll show you how to dominate the major search engines and directories.
Dominating the search engines and directories will help promote your import/export middleman
strategies, or promote specific products and services.

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CHAPTER 12: Dominating Internet Search Engines and Directories

CHAPTER 12

Dominating Internet
Search Engines and Directories
If you’re planning to import products from companies and individuals overseas and sell them on
the Internet, you will need to learn how to dominate search engines and directories.

By dominating search engines we mean two things:


1) Your website appears prominently in the search results
2) Your advertising appears prominently around the search results
In order to accomplish this you’ll need to understand a few basics regarding search engine
technology and how it really works.

This information and insight will give you a tremendous edge over most of the people that sell
products on the Internet — or do any kind of Internet marketing.

How Search Engines and Directories Really Work


Internet search engines are websites that help people find information.

All Internet search engines perform three basic tasks:


 They search the Internet based on keywords or phrases that are entered by the user.
 They keep an index of the words they find and where they find them.
 They enable users to look for words or phrases found in that index.
The earliest search engines consisted of an index of a few hundred thousand pages and documents.

Today, top search engines will index hundreds of millions of pages, and respond to tens of
millions of queries per day!

In this chapter, we’ll tell you how these major tasks are performed, and how Internet search
engines put the pieces together in order to let you find the information you need on the Web.

Before the Web became the most visible part of the Internet, there were search engines in place
to help people find information on the Internet.

Programs with names like “Gopher” and “Archie” kept indexes of files stored on servers
connected to the Internet. This dramatically reduced the amount of time required to find programs
and documents.

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CHAPTER 12: Dominating Internet Search Engines and Directories

In the late 1980s, being a serious Internet user meant knowing how to use gopher, Archie,
Veronica and the rest.
Most Internet users today limit their searches to the Web, so we’ll deal with the search engines
that focus on the contents of Web pages.
In order for a search engine to tell you where a file or document is, it must be found.
To find information amidst the hundreds of millions of Web pages that exist, a search engine
employs special software robots called spiders. Spiders build lists of the words found on Web sites.
When a spider is building its lists, the process is called Web crawling.
In order to build and maintain a viable list of words, a search engine’s spiders have to look at
a lot of pages.

How Does a Spider Start Traveling Over the Web?


The obvious starting points are typically lists of heavily used servers and popular pages. The
spider will begin with a popular site, indexing the words on its pages and following every link found
within the site. In this way, the spidering system quickly begins to travel, spreading out across the
most widely used portions of the Web.
Google.com, for instance, began as an academic search engine. Google’s initial system used
multiple spiders.
In order to keep everything running fast, Google created a system to feed necessary information
to the spiders.
The early Google system had a server dedicated to providing URLs to the spiders. Rather than
depending on an Internet service provider for the domain name server (DNS) that translates a server’s
name into an address. Google had its own DNS with a view to keeping delays to a minimum.
When a Google spider looks at an HTML web page, it notes two things:
 The words within the page
 Where the words were found
Words occurring in the title, subtitles, meta tags and other positions of relative importance were
noted for special consideration during a subsequent user search.
A Google spider was built to index every significant word on a page, leaving out the articles “a,”
“an” and “the.” Other spiders use different approaches.
The different approaches usually make the spider operate faster, and allow a user to search
more efficiently.
For example, some spiders keep track of the words in the title, sub-headings and links, along with
the 100 most frequently used words on the page. These spiders also keep track of each word in the
first 20 lines of text. Lycos is said to use this approach to spidering the Web.
Other search engines and spidering systems, like AltaVista, index every single word on a page,
including “a,” “an,” “the” and other “insignificant” words. The push to completeness in this approach is
matched by other systems in the attention given to the unseen portion of the Web page, the meta tags.

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What are Meta Tags and What Difference Does It Make?


Meta tags enable the owner of a web page to specify key words or concepts under which the page
will be indexed.

This can be really helpful, especially in cases in which the words on the page might have double
or triple meanings — a meta tag can guide the search engine in choosing which of the several
possible meanings for these words is correct.

There is a downside with over-reliance on meta tags, though. A careless or unscrupulous page
owner might add meta tags that fit very popular topics but have nothing to do with the actual
contents of the page. To protect against this, spiders will correlate meta tags with page content,
rejecting the meta tags that don’t match the words on the page.

Building the Index


Once the spiders have completed the task of finding information on Web pages the search engine
must store the information in a way that makes it useful (actually this task is never actually
completed — spiders are always crawling).

There are two components involved in making the gathered data accessible to users:
 The information stored with the data
 The method by which the information is indexed
In most cases a search engine could just store the word and the URL where it was found. But in
reality, this would limit the search engine in a big way because there would be no way of telling
whether the word was used in an important or a trivial way on the page.

In other words, there would be no way of building the “ranking list” that tries to present the
most useful pages at the top of the list of search results.

In order to deliver more results, most search engines store more than just the word and URL.

An engine might store the number of times that the word appears on a page.

The search engine would then assign a weight to each entry.

Each commercial search engine has a different formula for assigning weight to the words in its
index. This is one of the reasons why a search for the same word on different search engines will
produce different lists, with the pages presented in different orders.

Regardless of the precise combination of additional pieces of information stored by a search


engine, the data will be encoded to save storage space.

An index has a single purpose: It allows information to be found as quickly as possible.

There are a number of ways to build an index, but one of the most effective ways is to build a
hash table. In hashing, a formula is applied to attach a numerical value to each word.

The formula is designed to evenly distribute the entries across a predetermined number of divisions.

This numerical distribution is different from the distribution of words across the alphabet, and
that is the key to a hash table’s effectiveness.

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In English, there are some letters that begin many words, while others begin fewer. You’ll find, for
example, that the “M” section of the dictionary is much thicker than the “X” section. This inequity
means that finding a word beginning with a very “popular” letter could take much longer than finding
a word that begins with a less popular one.
Hashing evens out the difference, and reduces the average time it takes to find an entry. It also
separates the index from the actual entry.
A hash table contains the hashed number along with a pointer to the actual data, which can be
sorted in whichever way allows it to be stored most efficiently. The combination of efficient indexing
and effective storage makes it possible to get results quickly, even when the user creates a
complicated search.

Search Engine Optimization (SEO) and


Search Engine Marketing (SEM)
Search engine optimization is the technique of fine-tuning your website so it appears more
frequently and with a higher ranking in search engines, and thereby increasing traffic to your site.
Each search engine compiles a database of web pages, which are then ranked by relevance when
a particular search term is entered. Each search engine uses different algorithms in order to
determine a web page’s relevance for a given search. But there are a number of things you can do to
help a web page receive a higher ranking in search results.
Search engine marketing is the implementation of strategies to elevate a site’s page ranking in
search engines. A strong search engine ranking enables you to connect more easily with people who
are looking for the products or services that you offer.
Search engine marketing would include purchasing keywords and phrases (advertising). The two
most popular types of advertising on search engines are keyword buys/cost per click (CPC) and flat
rate keyword buys.

In Order to Dominate Search Engines and Directories You Must:


A) Build your website to accommodate different spider technologies and especially the
technologies of the top five search engines: Google, Yahoo!, MSN, Lycos and AOL.
B) Purchase relevant keywords and/or phrases in the top five search engines and top
directories on a cost per click basis and/or flat fee basis
Building your website to accommodate different spider technologies can be as simple as placing
“meta tags” in your source code. There are hundreds of resources and books on programming and
HTML that can help you or your webmaster set this up properly.
Purchasing relevant keywords in the top search engines and directories is very easy to do. All of
the top search engines have step-by-step instructions on their sites. In most cases, it will take about
20 minutes to purchase all of your keywords on each engine or directory.
What’s more, all of the major search engines have an administration section available when you
set up your account and purchase keywords.
The administration section will help you to revise, edit, change or delete keywords — as well as
purchase new keywords instantly.

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In the next chapter we’ll discuss the benefits of having powerful linking strategies in place.
On the surface this topic might appear to have nothing to do with an import/export business.
But entire World Wide Web is built on hypertext links! If you’re going to do business on
the Internet, or market anything on the Internet — it’s absolutely crucial that you understand
linking strategies.

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CHAPTER 13: Powerful Linking Strategies

CHAPTER 13

Powerful Linking Strategies


Linking strategies not only improve your “page ranking” on most of the top search engines. They
will also increase traffic to your website, and enable other sites and people to link to you and improve
the “viability” of your site.

One of the grandmasters of linking strategy and techniques is Eric Ward.

You can learn about Eric’s linking services and URL announcement services here:
http://www.ericward.com

You can also listen for FREE to a 30-minute, power packed interview that Eric gave to SEO-Radio
on Linking Strategies here: http://www.seoradio.com/20050322-eric-ward-on-link-publicity.html

Either way you look at it linking strategies are absolutely crucial to the success of your website as
it relates to traffic, popularity and search engine page ranking.

Here are a few things to keep in mind (courtesy of Eric Ward):

Linking’s Holy Grail: The Passively Obtained Backlink


A passively obtained backlink is nothing more than a link to your site that you had nothing to do
with obtaining. You didn’t know a thing about it. Didn’t ask for it, didn’t pay for it, and didn’t swap
for it.It just happened.

The search engines love passive links like this. Why? Because they can trust them.

Here’s an example. You sell organic produce. You have a web site. You sell your produce all over
the U.S., to hundreds of stores, food chains, and specialty markets. You’ve never once asked anyone
to link to your site, yet your site has several hundred links. How can this be?

Reason 1:
Many of the stores you sell your organic produce to also have web sites, and on their sites they
have a section named “Suppliers”. In this section they list the companies (like yours) that they
purchase products from, and when those companies have web sites, they make a link out of
the company name.Bingo, a passively obtained backlink for your organic produce company.

Reason 2:
You are going to attend an upcoming trade show for your industry. It just so happens that
the trade show has a web site, and on the trade show site there’s a section with links to the
web sites of all the companies that are going to attend. Once again, another passively
obtained backlink.

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These are just a couple of reasons a site might have links they didn’t seek. Search engines
judge these types of links as being a better indication of the quality of the content on the site
they are linked to than the links you DO actively pursue and obtain. This makes sense to a
certain point, since the basic nature of the web from the early days was a massive network of
passively obtained links. Back in 1993, nobody was seeking links in order to improve their
search rankings, because none of the search engines looked at links. They looked on-site only.
But here’s a dirty little secret. Many links that appear to have been passively obtained are in
fact actively obtained.
How do I know this? Because many of the links I mentioned for the organic produce
company in “Reason 1” (above) actually came about because I requested them. Many of the
grocery web sites existed before the organic produce company had a web site, so the grocery
store sites couldn’t link to the organic produce site, since there was nothing to link to.
But once the organic produce company launched their web site, there was something for the
grocery store sites to link to. The only catch is that all those grocery sites have no idea the
organic produce company has launched a site, so link requests HAVE to be made.
What appears to be a passively obtained backlink is in fact an actively obtained backlink.
All this masks the more important lesson: Every web site has its own universe of inbound
links it can reasonably expect to come about from a passive approach.
But you can’t just sit back and wait for a webmaster somewhere to happen upon your site and
link to it. The key is to be strategically active, rather than randomly active. Make sure you
know which sites are the best targets for your link requests. If you aren’t sure, seek advice
from someone you trust. The goal is not to trick the engines into thinking an actively
pursued link is a passive link. It’s to make sure you obtain the links your site has a natural
and logical reason to obtain. Identifying the natural and logical targets is 90% of the battle.
Until next time, I remain,
Eric Ward,
The Link Mensch

Using Google to Identify High Quality Link Targets


Building links to your site improves rankings in certain search engines. Not all of the search
engines put as much weight on inbound links, but one that does is Google. Google has become the
800-pound gorilla in the search engine wars, seemingly overnight.
Did you know you could use Google to identify the sites you need to have links from?
Not all links are created equal, and Google know this.
They know that FFA links are useless, as are link farm links. They help you clog your own inbox
and that’s all. In Google’s case, the sheer number of links doesn’t determine your ranking.
Google’s ranking algorithm takes into account each link’s importance along with other factors like
the proximity of your search keywords in the documents. In other words, it’s not just about the
number of sites that link to a given page, but also the importance of those sites (measured by the links
to each of them).
Google has given a name to its ranking algorithm for determining a web page’s importance; it’s
called PageRankTM.

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In order to accurately view a page’s PageRank, according to Google, you will need to install the
Google Toolbar into your Internet Explorer. Download it from http://toolbar.google.com/

You’ll notice after it’s installed that there’s a green “PageRank” meter. That meter is your window
into the inside of Google, telling you how important and high-quality Google considers your site to
be. And thus how well it’s going to rank in a relevant search. Placing your cursor over the meter will
display the numerical rating, an integer value between 1 and 10.

Granted the PageRank meter isn’t very precise, but nonetheless it is still immensely illuminating.
You can learn more about “PageRank” at: http://www.google.com/technology/

Once the Google toolbar is installed, you can start visiting sites that you want to consider
requesting links from to see how good their PageRanks are. Those with high PageRanks are the ones to
approach for reciprocal links, because they’ll help you the most with improving your own PageRank.

Don’t forget that your PageRank is only part of the equation. A web page must still have enough
content on it for Google to ascertain its theme. According to the CTO of Google (see the interview at
http://www.ibizinterviews.com/craigs1.htm for more), the key to ranking well in Google is two-fold:
having content-rich web pages, and building a web of links to your site from other reputable,
relevant sites.

Looking for Links In All The Wrong Places?


In their frenzy to build links to curry favor with the engines, web site owners miss a far more
important audience using topical tools.

Most people will tell you that links from Yahoo and DMOZ to your site are vital, and to a certain
extent I agree. Who wouldn’t want to be listed with two of the most widely used directories in the
world? It’s what marketers do after they get the Yahoo and DMOZ links that can make or break them.

Pursuing links just for Pagerank and Link Popularity in the major search engines is not going to go
away, as much as I wish it would. And by trying to impact Pagerank artificially, Pagerank as it is
determined now is doomed. Whether that happens in 2005 or 2010 I don’t know, but once thousands of
sites are after links for reasons other than relevancy, no link can be trusted enough to reward it, right?

Aside from the ethics of link building, pagerank, etc. let’s discuss sites and search engines
dedicated to niche topics. Niche and topical search engines and directories can bring your site
highly targeted traffic, maybe not a stampede of traffic but a steady trickle of perfectly qualified users.

And while some marketers are quick to claim nobody uses niche search engines because they’ve
never heard of them, I can tell you from ten years of experience they’re wrong.

It probably wouldn’t surprise you to find out there were search engines devoted to popular topics
like financial web sites or even Fish web sites.

But for proof that search engines are truly going vertical, look no further than ElvisFind, a search
engine and directory that only indexes content about Elvis Presley.

At the time of this writing ElvisFind contained 320 Elvis related web sites in 9 categories.
Obviously, if your site doesn’t have content about Elvis Presley, you have no reason to request a link
from them or submit your site to their editors.

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But if your site sells vacation packages to Memphis and has a “Spend the day at Graceland”
package, well, suddenly ElvisFind makes a lot more sense.
Some specialty search engines focus on more than just a specific topic. SearchEdu.com is a good
example. This search engine indexes pages from educational sites hosted on .edu domains. I use this
search engine to find links to pages at educational sites, since for my kind of clients’ educational links
pages are extremely useful (and they are pretty good for improving Pagerank too).
One nice aspect about specialty search engines is they typically don’t charge for links (although a
few have started charging), and better still I’ve noticed they add links and index sites far quicker than
most of their bigger brethren. There isn’t a sandbox at ElvisFind...
While there are hundreds of specialty search engines available, it can be hard to find the best
ones in any particular subject area. I have included some of the tools I use below. Once you find a
specialty search engine, the link request or site submission process is usually fairly straightforward.
Look for the “add your site” link and follow their directions. Options may even be available for paid
links or sponsored links.
Here are some online tools you can use to find specialty search engines.

Danny Sullivans’ List of Directories and Search Engine’s by Topic


http://searchenginewatch.com/links/specialty.html

SearchEngineGuide
http://www.searchengineguide.com/searchengines.html

Open Directory Specialized Search Engines Category


http://dmoz.org/Computers/Internet/Searching/Search_Engines/Specialized/

InvisibleWeb
http://www.invisible-web.com/

Powerful linking strategies can propel your import export business into the stratosphere.
In the next chapter we’ll walk you through the process of buying keywords on the major search
engines. Keyword advertising will enable you to promote products to a very targeted audience of
eager buyers. We’ll dispel all of the popular misconceptions and walk you through the keyword
buying process step-by-step.

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CHAPTER 14: Buying Keywords and Phrases on Search Engines

CHAPTER 14

Buying Keywords and Phrases


on Search Engines
You can purchase keywords and phrases in more than 200 top search engines and directories
with a view to marketing your import/export business and products.

There are currently two ways or methods for purchasing keywords and phrases on search engines.
1) Cost per click (CPC)
2) Flat fee
Both of these methods have advantages and disadvantages.

Let’s talk about why someone with an import/export business would purchase keywords and/or
phrases on a search engine or directory.

Let’s say that you’re reselling products on the Internet that you’ve imported from China.

Let’s also say that you have a retail component and a wholesale component to your business.

On the retail side you are targeting individuals or businesses that only purchase products in small
quantities. — Let’s say that your product is tee shirts.

On the wholesale side you are targeting retail stores, shops and the like.

The best way to approach this is to keep the two components completely separate.

That’s not what most people do — but most people do not understand how the Internet works.

If someone comes to your retail site and checks out your products — and then stumbles onto
your wholesale section — they’ll be shocked to learn they’re paying up to ten times the wholesale
price (or more)!

That’s true even if you have special or secured access to the wholesale section.

It’s much better to keep the two components (retail and wholesale) completely separate and on
different websites (and domains).

Okay — let’s talk about purchasing keywords and/or phrases in the top search engines.

Google’s AdWords is likely the most popular advertising network for search engine keyword
purchases on the Internet.
The Google AdWords “system” is really quite simple.

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Advertiser’s “bid” for specific keywords and phrases in an open market.


Words like: “100% cotton tee shirts,” “Cotton tee shirts” and “Colored cotton tee shirts” are
fairly popular.
In fact, all of these words are fairly popular based on Google AdWords Keyword Relevance Tool:
https://adwords.google.com/select/KeywordSandbox
You can also choose expanded broad matches like: “t shirt,” “customized t shirt” or “hilary
duff t shirt.”
Once you’ve selected the keywords that you want to purchase you’ll begin bidding on them.
Let’s say that you are the high bidder and are able to purchase the keyword/phrase, “100% cotton
t shirt” and your “bid” amount is $1 per click.
That means when someone enters the term or phrase “100% cotton t shirt” into the Google
search box your keyword “ad” matching that phrase would appear on the right hand side of the
search results page.
There will be other advertisers featured with you — but your ad should appear first on the page if
you are the highest bidder for that word.
In your Google AdWords account you can set a “spending cap” too. You can limit the amount you
spend each month for advertising keywords by simply specifying a spending cap.
Let’s say that you have set your spending cap at $500 per month.
That means if you receive 500 clicks (at $1 each or $500) your ad would be shut off automatically
— and the next highest bidder would take your spot.
Granted, click fraud or clicks that are generated maliciously or fraudulently is a problem. But
generally speaking, it’s manageable.
If you received 500 unique click thrus from targeted buyers there’s a very good chance a
percentage of these people will make a purchase on your website.
Hopefully you can see the value of purchasing the right keywords on the right engines — because
you receive targeted traffic and business.
The downside to cost per click keyword programs is obviously cost. The best and most sought
after keywords and phrases can be very expensive. If you have a limited budget you’ll have a hard
time competing on this playing field with large advertisers.
Some advertisers will purchase hundreds or even thousands of keywords and/or phrases.
An alternative to cost per click keyword buy programs is flat rate keyword buys like those offered
on the search engine ExactSeek: http://www.exactseek.com/featured_listings.html
ExactSeek also offers one of the best “bulk Keyword Buy Programs” on the Internet.
Granted, ExactSeek traffic pales in comparison to Google’s (ExactSeek currently receives about
150 million unique searches a month), but it’s still pretty formidable and costs a lot less.
Whatever engine or approach you prefer buying keywords and phrases in, it’s a great way to
market your import/export products and services.

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CHAPTER 14: Buying Keywords and Phrases on Search Engines

Gain insight into consumer buying habits and uncover


profitable niche markets with these websites and tools
Overture Keyword Suggestion Tool
http://inventory.overture.com/d/searchinventory/suggestion/

Yahoo Leading Searches


http://buzz.yahoo.com/

Google Search Trends - Zeitgeist


http://www.google.com/press/zeitgeist.html

Amazon Movers and Shakers List


http://www.amazon.com/exec/obidos/tg/new-for-you/movers-and-shakers/-/
books/104-6832628-4759129

Amazon Best Sellers


http://www.amazon.com/exec/obidos/tg/new-for-you/bestsellers/-/books/

Wordtracker - Advanced Keyword Analysis Tool


http://www.highertrustmarketing.com/part/wordtracker

Adword Analyzer
http://www.infoproductcreator.com/part/adwanalyze

URLTrends
http://www.urltrends.com

The “Top Tier” Search Engines with


Keyword Buy and/or Pay Per Click Programs
Yahoo!
http://www.yahoo.com

Google
http://www.google.com

MSN
http://www.msn.com

AOL
http://www.aol.com

Go.com
http://www.go.com

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Overture (now part of Yahoo!)


http://www.overture.com

SearchScout
http://www.searchscout.com

Lycos
http://www.lycos.com

AltaVista
http://www.altavista.com

Excite
http://www.excite.com

The Top 20 “Second Tier” Search Engines with


Keyword Buy and/or Pay Per Click Programs:
eSpotting
http://www.espotting.com

ExactSeek
http://www.exactseek.com

FindWhat
http://www.findwhat.com

LookSmart Listings
http://listings.looksmart.com

Enhance.com
http://www.enhance.com

ePilot.com
http://www.epilot.com

Kanoodle
http://www.kanoodle.com

Dogpile
http://www.dogpile.com

Vivisimo
http://www.vivisimo.com

HotBot
http://www.hotbot.com

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CHAPTER 14: Buying Keywords and Phrases on Search Engines

Kartoo
http://www.kartoo.com

Mamma.com
http://www.mamma.com

SurfWax
http://www.surfwax.com

Excite
http://www.excite.com

Fazzle
http://www.fazzle.com

InfoGrid
http://www.infogrid.com

IXQuick
http://www.ixquick.com

MetaCrawler
http://www.metacrawler.com

Turbo10
http://www.turbo10.com

Lycos InSite
http://insite.lycos.com

Buying keywords on the top Pay Per Click (PPC) Engines will help you target eager buyers for
your imported products. Another popular alternative to PPC engines are flat fee keyword buys like
those offered on ExactSeek.com.
In the next chapter we’ll show you the secrets of effective online advertising.

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CHAPTER 15: The Secrets of Effective Online Advertising

CHAPTER 15

The Secrets of Effective Online Advertising


Many entrepreneurs walk away from Internet advertising disillusioned, discouraged and/or broke.
In most cases, these entrepreneurs did not understand the concept of “testing” ad copy and offers.
What’s more, people do not typically understand which advertising mediums are the best for a
particular product or service.
For example, running a conventional banner (468 x 60 pixels) on “general interest” websites and
portals is generally a waste of time and money.
If a banner is run on a targeted website or portal there’s a much higher probability that it will be
“clicked” or responded to.
Generally speaking, conventional banners are a waste of time on the Internet these days because
the click thru rate is abysmal.
In addition, running a “text link” advertisement on a website or portal that already has dozens of
text links is a waste of time and money too – in most cases.
The secret to effective online advertising is a “targeted” audience and achieving “direct response”.
Direct response advertising has many shapes and sizes but it always focuses on targeted,
qualified prospects.
Most entrepreneurs target “the masses” with mass media advertising tools like television,
newspapers, radio, billboards, generic email blasts, or bulk snail mail.
What’s more, you don’t need a lot of money to run effective online advertising campaigns if you
do it right.
The Internet is a direct marketer’s paradise!
The key is to focus on a very targeted audience. Mass-market advertising does the exact opposite.
Does mass-market advertising work? It depends on the offer, ad copy and timing.
Most of the time it will be disastrous.
Mass-market advertising could be much more effective if it focused on a target audience.
According to most advertising agencies a “prime” target audience would be anyone in the 18 to 34
year-old age bracket.
We all know there’s a big difference between an 18 year-old and 34 year-olds.
What’s more, this is NOT a targeted audience. It is a huge slice of the population.

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CHAPTER 15: The Secrets of Effective Online Advertising

A highly targeted audience profile might look like this:


 20 year-old college student
 Internet, iPod, Web savvy
 Frequent online buyer of iPod accessories, software, music, books and clothes
 Disposable income — credit card carrier
 Most recent purchase — dozens roses from ProFlowers.com

That is a targeted audience and prospect!


The secret to effective online advertising is to think in terms of direct response, targeted audience
and “A Prospects.”
An “A” prospect in this context would be someone who has recently purchased the same thing (or
similar) that you are selling.
Most of the people that are doing business online today overlook the “A” prospect formula – thus
costing them a lot of money in wasted advertising and profits.
What does this mean in the real world?
If you’re selling the products that you’ve imported from overseas companies you’ll want to
advertise to a targeted audience.
Google and the other search engines enable you to purchase keywords and phrases that
people might use to find your products. But these “searchers” are not always a targeted audience
or “A prospects.”
Just because someone is searching for “brushed marble tile” does not mean they are in the
market to buy it. It could be distributor-researching competitors. It could be someone looking around
because they might buy “brushed marble tile” someday.
What’s more, someone might be searching “brushed marble tile” because they purchased those
words in Google and they want to see when it comes up on the search result pages!
The point is not all of the people searching for “brushed marble tile” will be targeted, “A” prospects.
That said, Google and the other top search engines can be very effective when it comes
to advertising.
The difference is you can “test” specific keywords and phrases, monitor the click thru and more
importantly the click thrus that convert to sales.

Targeted Email Newsletters


Targeted email newsletters are perhaps THE most overlooked advertising medium on the Internet.
There is a world of difference between “generic email promotions” and promotions that are sent
to targeted, opt-in subscribers.
Most of the large advertising agencies try to use “generic email lists” the same way they use snail
mail lists. That’s a big mistake.

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CHAPTER 15: The Secrets of Effective Online Advertising

Targeted email newsletter subscribers have opt-in and/or requested specific information
or publications.

Generic email lists typically start out with someone making a specific purchase or request for
information. But as months and years pass these lists are used hundreds of times — over and over —
and become “watered down” and in most cases irrelevant.

For example, someone may have requested information on a new business directory. The
publisher sends the subscriber the information that was requested.

But the publisher continues to send the requester email every week for a year offering other
products and services.

Then the publisher sells his or her company and the new publisher begins sending email three
times a week selling everything from business directories, to website hosting, ecommerce products
and more.

This is why people end up receiving hundreds of email that has nothing to do with the
original request.

It’s called “generic email” — it’s a common occurrence but an accepted practice for many
advertising agencies and email list brokers.

Targeted email newsletters on the other hand often address topics or categories rather than a
specific product.

Think of email newsletters as targeted email publications.

There are millions of email newsletters circulating on the Internet today covering everything
from animal health to network security.

The best thing about them is advertising is usually reasonably priced.

On top of that, in a print publication or magazine you may have 20 or 30 advertisers.

Most email newsletters are typically only a standard web page in length and only feature two or
three advertising messages.

SiteProNews, for example, is an email newsletter devoted to professional webmasters and


eBusiness site owners. It’s published three times per week. The newsletter only features three
advertisers per issue. There are usually only three advertising “spots” or positions per issue.

The advertising spots are fairly large (by industry standards) and measure 400 x 175 pixels.

This particular email newsletter reaches a very targeted audience and has 500,000+ opt-in
subscribers.

Blogs, RSS feeds and Podcasts


Blogs, RSS feeds and Podcasts have not really caught on as an Internet advertising medium.
Part of the problem is the audiences are usually too small, and oftentimes too targeted.
The upside is that advertising on blogs, RSS feeds and Podcasts is relatively inexpensive.

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CHAPTER 15: The Secrets of Effective Online Advertising

Here are a couple of resources for advertising on these mediums:

BlogAds
http://www.blogads.com

RSS –Ads
http://www.rssads.com/rss/default_rss.jsp

Podcast Directory
http://www.podcastdirectory.com/advertising/

Internet and Email Discussion Lists


Advertising is generally frowned on in Internet and email discussion lists. But everybody does it
— even if it’s only advertising his or her opinion.
The catch is to have a signature that advertises your website URL.
These can be very profitable — and especially when you’re on targeted discussion lists with other
movers and shakers.
Highly recommended.

Tile.Net Discussion List Directory


http://www.tile.net/lists

Google Groups
http://groups.google.com

Topica
http://lists.topica.com

CraigsList
http://www.craigslist.com

The key to effective online advertising is to focus on a targeted audience. Buying advertising on
the major search engines (keyword ads), email newsletters, blogs, RSS feeds, podcasts and discussion
lists can be very effective.
In the next chapter we’ll show you how to resell imported products through classified ads.

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CHAPTER 16: Reselling Imported Products with Online Classified Ads

CHAPTER 16

Reselling Imported Products


with Online Classified Ads
Online classified ads are probably the most underused method for advertising and marketing in
the world.

Granted, thousands of new classified websites have been launched in the past few years with an
eye to taking revenue from print newspapers and magazines.

But the problem with most of these sites is actual real-time traffic.

What’s more, whenever you ask the site’s owners or customer service for verified traffic results
and statistics they often misplace your email — by accident of course.

The secret to using online classified ads to sell anything is:


A) Targeted real-time traffic
B) Proven products
C) A website that can handle a sale quickly (without having to jump through rings of fire)
One of the largest and most successful online classified sites is called CraigsList
http://www.craiglist.com

People from every walk of life visit CraigsList on a daily basis looking for jobs, apartments,
relationships, automobiles, advice, companionship, freelance experts and more.

In the old days you would place an ad on an online classified site and wait until someone responded.

But that has all changed. Today you can automate the process with software and manage your
online classified campaign with a couple of clicks.

On top of that, sites like ClassifiedClub http://www.classifiedclub.com/submissionsorder.html


that offer do it yourself classified submission software and/or professional software submission services.

Due diligence is an absolute requirement when it comes to classified submission software and
submission services — not all are created equal!

The best way to find out if classified submission software or a submission service is legitimate is
to ask people that have used it. The best place to do that is on webmaster and eBusiness marketing
forums — WebmasterWorld.com and WarriorForum.com.

Online classified sites can be a tremendous source of customers and targeted traffic if used correctly.

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CHAPTER 16: Reselling Imported Products with Online Classified Ads

Most online classified sites have very little traffic — let alone targeted traffic.

You’ll want to focus on the top 15 or 20 online classified sites that have significant targeted traffic.

It’s a good thing to remember that most people come to online classified sites to save money —
they’re looking for a deal.

On top of that, other than automobiles, concert tickets or cruise vacations, lower priced products
will always sell better.

Information products like eBooks, eReports and software programs priced under $30 often
perform well on classified sites, too.

How to Sell Products Successfully with Online Classifieds


1) Place the ad in the right category
2) Powerful headline — short and to the point — include benefit
3) The right product (stick with items that are already selling — i.e. iPods, Cell phones,
wellness products, etc.
4) Priced to sell
5) Include a link to a website that can handle the sale quickly

The Top 20 Online Classified Websites


Google Local Classifieds (coming soon)
http://local.google.com

Inetgiant
http://www.inetgiant.com

TraderOnline
http://www.traderonline.com

AOL Classifieds
http://classifieds.aol.com

US Free Ads
http://www.usfreeads.com

Sell.com
http://www.sell.com

CraigsList
http://www.craigslist.com

Yahoo! Classifieds
http://classifieds.yahoo.com

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Live Deal
http://www.livedeal.com

Ziply
http://www.ziply.com

AdPost
http://www.adpost.com

SuperClassifieds (classified site directory)


http://www.superclassifieds.com

Half.com
http://www.half.com

AdQuest
http://www.adquest.com

SFGate
http://www.sfgate.com/classifieds

AmericaNet
http://www.americanet.com/Classified

Loot.com
http://www.loot.com

eClassifieds
http://www.e-classifieds.net

ClassifiedAds.com
http://www.classifiedads.com

eDirection
http://www.edirection.com

Online classified ads are a great way to advertise to a very targeted audience of prospective
buyers (looking for a good deal). Online classifieds are typically less expensive than all other forms of
advertising. Some classified sites like CraigsList and Yahoo! reach millions of people every month.
Granted, you probably won’t get rich by selling products through classified ads — but it can
provide a nice supplemental income stream.
In the next chapter we’ll show you the benefits of having eStores and how to market them successfully.

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CHAPTER 17: How to Build and Market eStores “On Demand”

CHAPTER 17

How to Build and Market eStores


“On Demand”
One of the best ways to sell imported or exported products on the Internet is with online or eStores.

Ten years ago eStores were expensive, complicated and required hours of sophisticated programming.

That has all changed — for the better.

Today there are hundreds of eStore options available to entrepreneurs.

What’s more, many of the online stores today are inexpensive and incredibly easy to maintain.

The 4 Most Important Aspects of an Online Store (according to


Amazon.com — one of the largest and most successful!):
1) The shopping cart must be easy to use and trouble free
2) You must be able to accept all payment methods in multiple currencies (including PayPal,
eChecks and paper checks)
3) The product photos and images must be professional quality, and clearly marked with a
price and description
4) The order confirmation must be clear and concise — and be shown on the Web upon
completion as well as with email

Whenever you begin selling products online to the public you should test the system yourself.

That doesn’t mean delegating the task to a webmaster, programmer, graphic designer, customer
service person, web host or customer.

We recommend that you test the system yourself using your credit card and money!

Believe it or not — most of the people that do business online never bother to check the ordering
process themselves. They just assume the system has been checked and doubled checked.

If you place an order on Amazon.com you will see how the ordering process and confirmation
should look.

The key is to enable users to place orders (and send money!) as quickly and efficiently as
possible. If you do it right in the beginning you won’t have to mess with it down the road.

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One of the most difficult aspects with respect to programming and database administration for
any online store is the inventory and shopping cart process.
But there’s no need to get overwhelmed. There are dozens of online store systems available on the
Internet today that do most of the work for you.
In most cases it’s a good idea to start small and gradually increase the size of your inventory (if
you so desire).
If you’re only going to focus on and offer a few products — that’s even better because it will be
incredibly easy to maintain and support such a system.
What do we mean by an online store that offers products “on demand”?
Simply put — you should be able to instantly create a product and/ or product category in your
online store.
For example, Hurricane Katrina in 2005 was a devastating event. Millions of people were displaced.
Many entrepreneurs saw an opportunity to help people by selling “on demand” products that
were in demand, like waterproof flashlights, first aid kits, oxygen tanks, food, clothing and even
donations to the American Red Cross.
Important Note: Offering donations to non-profit organizations like the American Red Cross can
be tricky. There is often more involved than just placing a “Donate Here button” in your online store.
Be sure to check the requirements, policies and procedures for each non-profit group before offering
this option in your online store.
Here’s another example: A national TV news magazine ran a special feature on the health benefits
of Chinese ginseng.
People began searching Google in droves to find places to purchase Chinese ginseng online.
If you didn’t offer ginseng in your online store — you could quickly add it and include a
professional photograph. You would need to have the product on hand or in inventory in order to
fulfill the demand.
You could also purchase the keywords “Chinese ginseng products” (and maybe the name of the
television show that broadcast the special feature!) on Google or the other top search engines in a
couple of minutes.
That’s what we mean by building and marketing online stores and products — on demand… the
objective being to sell products “on demand” quickly and easily.

Here’s a List of the TOP TEN eStore Shopping Cart


Applications and Services:
MonsterCommerce
http://www.monstercommerce.com

MIVA
http://www.miva.com

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CHAPTER 17: How to Build and Market eStores “On Demand”

Volusion
http://www.volusion.com

SalesCart
http://www.salescart.com

ShoppingCartPlus
http://www.shoppingcartsplus.com

ShopFactory
http://www.shopfactory.com

KingCart
http://www.kingcart.com

Storefront
http://www.storefront.net

AbleCommerce
http://www.ablecommerce.com

EasyCart
http://easycart.com

Build an Online Store or Shopping Cart Yourself (open source article)


http://www.devx.com/opensource/Article/26654

Plug ‘N Play Online Stores


(these can be set up in just a few minutes)
Yahoo! Online Stores
http://smallbusiness.yahoo.com

Bizland
http://www.bizland.com

InstantOnlineStores
http://www.instantonlinestores.com

Froogle Merchants (Google)


https://www.google.com/froogle/merchants

DollarDays
http://www.dollardays.com/openastore.asp

WirePlanet
http://www.wireplanet.com/svc_webstore.asp

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BuyIt-Sellit
http://www1.buyitsellit.com

2Checkout
http://www.2checkout.com

eBay Storefronts
http://pages.ebay.com/storefronts/seller-landing.html

Amazon.com Merchant (and zShops)


http://www.amazon.com

Online stores can be your key to riches with an import/export business.


Think about it. You can import products for pennies on the dollar and resell them on the Internet
for 100%, 200%, 300% markups or more!
On top of that, online stores are easy to set up, maintain and market.
But it’s important that you launch your online store today! Don’t waste your time thinking about
how it will work. Take action.
Check out Yahoo! Online Stores, Froogle, Bizland or even PayPal Stores! You’ll see how easy it is to
launch a profitable online store.
Don’t let this opportunity pass you by.
In the next chapter we’ll help you get started. The Fast Start Strategy is designed to help you
launch an import/export business as quickly and simply as possible.
Let’s start making money with this business!

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CHAPTER 18: ACTION PLAN: Fast Start Strategy — Completing Your First Deal

CHAPTER 18

ACTION PLAN
Fast Start Strategy – Completing Your First Deal
The first step toward building a profitable Internet based import/export business is taking the
right action.

That is what this chapter is designed to help you do.

After completing your first deal your entrepreneurial juices will start to flow. New ideas,
approaches and methods will begin appearing as if out of nowhere.

Ask any successful entrepreneur what the single most important element to their success is and
invariably they will tell you — taking action on an idea.

Bill Gates, the founder of Microsoft (and richest man in the world according to Forbes magazine),
said in an interview recently that hundreds of people were developing software programs and
operating systems for personal computers. The one thing that set him apart was that he acted on his
idea of becoming “the” operating system for personal computers.

Taking action — no matter how large or small — will make a difference in your business success.

Once you’ve decided to take action the next step will be to determine what area of importing and
exporting you would like to focus on initially.

Don’t make this step too difficult — it’s simply a matter of what aspect of this business interests
you the most.

If you’re interested and become passionate about a specific area the details and money will
follow if you take the right action.

Four Main Areas of an Internet Import/Export Business


 Matching Buyers with Sellers
 Import Products for the Wholesale Market
 Exporting Products to Overseas Buyers
 Importing Products for Resale on the Internet

We‘ll develop an Action Plan for each of these areas. Your plan may be slightly different, but this
will give you a start in the right direction.

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Matching Buyers with Sellers


This is easy with Alibaba.com. Go to http://www.alibaba.com now.

Near the top of the page next to “Search,” you will see a pull-down menu that includes Buying
Leads and Selling Leads.

By the way, if you haven’t registered as a member you should do so now (it’s free).

Click on Buying Leads and you’ll see 30 Product Categories. Select Agriculture. In today’s listing
there is an entry entitled Buy Onion. ("Alibaba is constantly updating its buyers and sellers so by the
time you read this, these directions may no longer show you a lead for Buy Onion, but I want to use
this example to illustrate how easy it is to match buyers with sellers and profit from it!") This is
a company that is interested in buying large quantities of size 5-7 red onions. The company is
located in Malaysia. When you click on their listing you also learn they need the onions shipped in
10kg mesh bags.

We’re making progress!

Save this web page — and open a new window in your web browser (File -> New Window) and go
to the Alibaba.com home page again.

Click on Selling Leads this time.

Search for “red onions” in the Selling Leads.

In today’s listings there are several companies that are selling red onions.

Let’s pick the company with a “TrustPass” certification. This will help us identify the most trust
worthy company; one that is experienced at exporting.

If we click on this Seller’s Listing we find out they sell red onions (sizes 5-7 are very common) and
ship them in mesh bags.

Further down in their listing we’ll see the Contact Information. Click on the Inquire Now button.

We need to ask this seller to send us a quote for twenty 10kg mesh bags of number 5-7 red onions
including shipping costs to Malaysia.

Once we’ve obtained this quote we can contact the interested Buyer and give them the quote.

But remember if you’re Matching Buyers and Sellers you will need to make a reasonable profit.

When you send a quote to the Buyer our suggestion would be to add 15% to the quote. This 15%
charge will be your profit.

When the Buyer agrees to purchase the product (in this case red onions) they will send you from
one third to one half of the purchase price. You will need to send this same amount to the Seller.

After the product has been shipped by the Seller and received by the Buyer the remaining funds
will be sent to you (typically by wire transfer).

You will in turn send the remaining balance due to the Seller (less your 15% markup/profit margin).

That’s it!

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CHAPTER 18: ACTION PLAN: Fast Start Strategy — Completing Your First Deal

In this case let’s say the quote that you received from the Seller was $75 for each 10kg mesh bag
of red onions (this includes shipping to Malaysia).

The Buyer has requested 100 bags, so 100 bags x $75 each = $7,500.

But that’s not the quote you’ll send to the Buyer — when you send a quote to the Buyer you will
need to include a 15% profit margin on the total order.

To calculate your profit margin, multiply the Seller’s price x your percentage profit margin:
$7,500 x 15% = $1,125 (your profit margin).

The quote that you send to the Buyer will be $7,500 + $1,125 = $8,625.

When this deal is completed you will have made $1,125.

The only things that are involved with matching a Buyer and Seller on Alibaba.com, are sending a
couple of emails (or making a couple of phone calls), overseeing the shipment, and collecting $1,125
for your efforts.

Importing Products for the Wholesale Market


Importing products for the wholesale market is quite simple, too.

We’ll need to identify which products have the greatest demand.

In Chapter 10 we discussed ways of identifying some of the products that have a strong demand.

But let’s use 100% cotton t-shirts for illustration purposes (there are actually thousands of
products that could be used).

How many stores, shops and retailers sell 100% cotton t-shirts in the U.S.? Canada? Australia?
U.K.? Middle East? Africa?

We think it’s safe to say that hundreds of thousands of stores sell 100% cotton t-shirts!

Let’s identify and contact twelve stores to see if they would be open to receiving a price list from
you for 100% cotton t-shirts.

Most of the largest retail stores have already established relationships and/or own the factories
overseas that produce 100% cotton t-shirts.

So let’s focus on five medium-sized clothing retailers for this illustration.

We provided a link to RetailNet http://www.retailnet.com let’s go there now.

On the left hand side of the homepage you will see a category entitled Apparel — click it.

We’re going to scour the headlines and/or databases to identify five medium-sized apparel retailers.

The following five companies work fine for this example:

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CHAPTER 18: ACTION PLAN: Fast Start Strategy — Completing Your First Deal

Stein Mart Inc.


1200 Riverplace Boulevard
Jacksonville, FL 32207
Phone: 904-346-1500
Fax: 904-398-4341
Web Site: http://www.steinmart.com

Bebe Stores, Inc.


400 Valley Drive
Brisbane, CA 94005
Phone: 415-715-3900
Fax: 415-715-3939
Web Site: http://www.bebe.com

Finish Line Inc.


3308 North Mitthoeffer Road
Indianapolis, IN 46235
Phone: 317-899-1022
Fax: 317-899-0237
Web Site: http://www.thefinishline.com

Gymboree Corp.
500 Howard Street
San Francisco, CA 94105
Phone: 415-278-7000
Fax: 650-579-1733
Web Site: http://www.gymboree.com

Charlotte Russe Holding Inc.


4645 Morena Boulevard
San Diego, CA 92117
Phone: 858-587-1500
Fax: 858-587-4902
Web Site: http://www.charlotte-russe.com

The next step is to identify the purchasing manager or apparel buyer at each of the five
companies listed above. You can do this by going to their website, clicking About Us or Company
Profile — and digging. If you can’t find a specific contact then just call or email the company for his or
her contact information.

Once you have obtained the appropriate buyer contact ask them if they would be open to receiving
a wholesale price list from you. You can mention that you are an importer of 100% cotton t-shirts.

If you are unsuccessful with these companies continue identifying and contacting other
apparel retailers.

You WILL find someone that is willing to look at your wholesale price list!

What’s more, these five companies may be medium-sized retailers but they are still very large.

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CHAPTER 18: ACTION PLAN: Fast Start Strategy — Completing Your First Deal

You can contact much smaller retailers in local areas, too — try search on Google Local for an
apparel retailer in a city of your choice!

The next step is to locate a company that manufactures, sells and is able to export 100%
cotton t-shirts.

Again we go to Alibaba.com.

Search for “cotton t-shirts” on the Alibaba.com main page.

You will find hundreds of companies that manufacture, sell and are able to export 100%
cotton t-shirts.

Simply identify twelve of the most promising companies — click on their listing — and click on
the Inquire Now button. Ask them to send you a quote for 5,000 100% cotton shirts in various sizes
and colors.

When the retailers that you have contacted respond in the affirmative and want to see a
wholesale price list you can send them one.

Important Note: When you are sending a wholesale price list to retailers it needs to look similar
to the ones they receive from hundreds of wholesalers. When you inquire for a price quote from the
exporting companies ask them to send you a wholesale price list for t-shirts. You will use this
wholesale price list as a “template” to design your own (with your name at the top, etc.). In addition,
you will need to include a 10-15% profit margin (or more) on the items. This is how you make money-
exporting products for retailers.

Let’s see how the profit calculations work when importing products for the wholesale market.

Finish Line Inc. agrees to purchase 15,000 100% cotton t-shirts from your company at $1.95 each
plus shipping ($4,200) for a total of $33,450. This amount includes all taxes, fees and insurance.

ABC Export Company in China agrees to export 15,000 100% cotton t-shirts to your client (Finish
Line Inc.) for $1.25 each plus shipping ($4,200) for a total of $22,950.

Your profit when this deal is completed would be $10,500!

You can see why so many entrepreneurs get hooked on importing products for the
wholesale market.

What’s more, there are tens of thousands of items and products waiting to be imported and sold
to the wholesale or retail market.

Exporting Products to Overseas Buyers


Exporting products to overseas buyers is quite simple and can be a lot of fun, too.

Thousands of companies in practically every country of the world need to import products
because they lack the resources in their own country.

For example, China is one of the largest importers of agriculture products in the world and the
trend continues to rise! They have an insatiable demand for hundreds of different products including

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corn, wheat, soybeans, oats, vegetable oil, foodstuffs, coffee, tea, sugar, orange juice, rye, barley and
many more.

Granted, most of the billion dollar deals and shipments are handled by multi-national
corporations like ADM, Cargill and Dupont.

But there are still unlimited opportunities for small to medium-sized exporters.

For example, on Alibaba.com on any given day you will find hundreds, and in some cases
thousands of Buying Leads from people and companies that are looking to import products from the
U.S., Canada, Mexico and the U.K., etc.

For instance, this morning a Buyer from Portugal is looking for 4 metric tons of canola oil per month.

You can search Alibaba.com to see if you can match this Buyer with a Seller (as we mentioned earlier).

But another way to approach this is to find a company that produces canola oil and is able to
export it to Portugal.

You see there are thousands of companies that produce and manufacture and export products
that are totally unaware of sites like Alibaba.com.

Alibaba.com can be your secret resource.

You simply identify companies that need products now (Buyers) and then locate companies that
produce, manufacture and can export those products.

It’s fun!

How to Find Companies that Produce,


Manufacture and Export Products to Overseas Markets
There are many ways to find this information, but the search engine Google is a pretty good place
to start.

Let’s find a company that produces, manufactures and is able to export canola oil to this Buyer
in Portugal.

Go to Google http://www.google.com

Enter these words in the search box: we produce canola oil

Our first search returned results on a company in Canada that produces and exports canola oil.

There were hundreds of other search result pages but this one sounds the most promising.

Upon further investigation we find that this company is willing and able to export canola oil to
Portugal. Although they have never shipped canola oil specifically to Portugal – they have exported
product to Europe, the Middle East, Africa and Asia.

So this company appears to be a good fit.

All you need to do is contact this company with your prospective buyers specifications and ask

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CHAPTER 18: ACTION PLAN: Fast Start Strategy — Completing Your First Deal

for a quote. Oftentimes the companies will want to talk to you by phone — and remember you have
an international exporting company.

As we’ve said, deals like this are plentiful!

Importing Products for Resale on the Internet


This is perhaps the most exciting aspect of an import/export business because of the profit
potential. But it’s also a quick and easy way to get into this business!

The objective is to import products as inexpensively as possible and resell them on the Internet
with an online store.
The trick is to identifying the hottest markets and trends so you don’t have to carry a large inventory.
For example, let’s import sunglasses as inexpensively as possible and sell them on the Internet.
What’s more, we need to get a website up and running, and be able to accept credit cards as
quickly as possible. One of the best ways to do this is with “instant storefronts” like the ones we
suggested in Chapter 9.
For this illustration let’s use an eBay storefront and/or auction because it receives monster
targeted traffic, and you can set up a store in just a few minutes.
In time you might want to secure your own domain names and implement your own ecommerce
applications (like those we mentioned) so as to maximize profits!
You can open an eBay Store in about 20 minutes and the pricing starts at about $15.95 month:
http://pages.ebay.com/storefronts/seller-landing.html
It is highly recommended that you spend a few minutes reading the tutorials because you’ll learn
everything you need to know about eBay Stores, policies, procedures and best of all — additional
marketing and promotion ideas.
Okay — we’ve opened our storefront and we’re going to focus on sunglasses because it’s a fairly
hot item and because we can import them inexpensively (as you will see).
The next step is to locate a company that can export sunglasses as inexpensively as possible.
We go to Alibaba.com once again to find sunglasses manufacturers.
Important note: There may be companies in your country that manufacture products like this
but generally speaking the least expensive products are typically found in Asia, India, Pakistan, South
America and Mexico).
Enter “sunglasses” in the search box at the top of the page (in the Selling Leads category). You will
find more than 712 Selling Leads in this category!
Let’s choose the first company (they are also a TrustPass Member which enhances the credibility).
Upon further investigation we find that this company is located in China (no surprise there) and
is extremely competent when it comes to exporting their products anywhere in the world.
We also learn they ship most of the product line in cases of 300.

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Most of the time you will find that exporting companies have minimum order requirements.
That’s okay — because when you are first starting out in your import/export business you will only be
placing minimum orders — because you don’t want to maintain large inventories.
The cost for a minimum order of 300 assorted sunglasses is approximately $285 (or $.95 each)
plus shipping of $75. The total cost for this order is $360.
Here’s the exciting part!
Let’s go back to the eBay main page and search for sunglasses. The prices and styles vary a great
deal but sunglasses sell for $6.95 to $150 each.
We’ll need to test different price points to see at which level we can move the greatest number.
But even if we sell them at the lowest price point of $6.95 each we’ll make a significant profit.
If the total sunglasses order from China is $360, that means that we’re paying about $1.20 each
($360 divided by 300 = $1.20).
In this scenario we generated a profit of more than 550%!!!
Sunglasses are only the tip of the iceberg!
There are literally thousands of products in hundreds of categories that you can import very
inexpensively and resell them on the Internet for mind-boggling profits!
NOW is the time to make it happen.
Take action today.
Discover the hottest products on the Internet — import them as inexpensively as possible and
resell them for big profits. What’s more, we only used eBay in this example!
There are dozens of high traffic sites, marketplaces, online classifieds and storefronts that you
can utilize to sell imported products for major profits!

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CHAPTER 19: Growing Your Business for Even Bigger Profits

CHAPTER 19

Growing Your Business for Even Bigger Profits


This chapter is devoted to growing your import/export business as well as your profits.
The following information is why most entrepreneurs love this business – monster profits!
Let’s take a look at a few of the most successful importer/exporters the world has ever known.
Granted, many of these entrepreneurs did not have the luxury of high tech communications,
satellite, high-speed Internet, supersonic transportation or sophisticated logistic systems and
applications.
That is why an import/export business is tailor made for today’s Internet entrepreneur!

Renowned Importers and Exporters


 George Gray of Tunbridge Wells, U.K. was a successful entrepreneur who made a fortune
from importing fruit and producing confectionery
 In the 1880s the dime-store magnate F. W. Woolworth discovered Lauscha’s Glaskugeln
ornaments during a visit to Germany. He made a fortune importing the German glass
ornaments to America
 Julius Robert Oppenheimer was the son of a German immigrant and made his fortune by
importing textiles in New York City
 George Smith, a Victorian publisher, made a fortune from importing mineral water
 Joseph P. Kennedy and family made a fortune by importing Scotch
 Sidney Frank of New Rochelle, NY has made a fortune importing the world’s most
expensive vodka’s GreyGoose and Jaegermeister. He enjoyed more than $115 million in
profits in 2004
 Shakar Pentaka an Indian businessman, has made a fortune by importing and selling
blankets in Africa
 Automotive entrepreneur Malcolm Bricklin is on a mission to be the first mass importer of
low cost Chinese cars. Bricklin has had a long illustrious career of importing automobiles.
He started by importing Subarus in 1968 and later founded Yugo America Inc.which
imported Yugo cars from the former Yugoslavia
 Rajit Argawal, a very rich businessman in Karachi, India, made a large fortune by
importing needles in the early 1900’s
 Aristotle Onassis made his first fortune by importing tobacco and then bought a whaling
fleet followed by surplus ships from the United States at the end of World War II

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CHAPTER 19: Growing Your Business for Even Bigger Profits

 In the 13th Century, The Saylors of Dieppe, Viking descendants, made their fortune by
importing precious wood.
 Mayer Amschel Rothschild (of The House of Rothschild fame) amassed a sizable fortune
by importing wine and manufactured materials from England
 William Gibbs made his fortune from importing guano from Peru for use as fertilizer
 Australian entrepreneur Dick Smith made his fortune by importing electronics from Asia
 Three Scots, all brothers — Patrick, James and Daniel McMasters amassed a small fortune
by importing British goods into the U.S.
 Semon Bache made his money importing plate and window glass into the United States in
the early 1900’s
 William H. Gebhard made a fortune importing fine wines and liquors for a rich clientele
that could afford the best
 Stephen R. Lesher parlayed something as humble as imported tailors’ trimmings
into a fortune
 Leonard Lewisohn built a multimillion dollar fortune by importing hair, bristles, ostrich
and other feathers
 In the 19th century, Mark Dunham made his fortune in Wayne by importing Percheron
draft horses from France
 Alfred Kohlberg, a wealthy textile owner made his fortune importing Irish linen and then
embroidered it very inexpensively in China
 Humphrey Monmouth lived was a wealthy merchant in the 1600’s who made a fortune
importing and remanufacturing cloth
 Boro Vukadinovic, a multi-millionaire textile tycoon, made his fortune in America by
importing Italian and Eastern European goods
 Matsuhisha Kojima, a motocross champion in Japan, made his fortune importing bananas
 W.W. Crenshaw made a fortune importing four million banana stems to the Golden State
 Hundreds of Russians made small fortunes importing personal computers in 1990s
 American millionaire Elias Haskett Derby made his money importing black pepper. He
used his fortune to endow Yale University
 Royal Dutch/Shell Group co-founder Marcus Samuel made his earliest fortune importing
knick-knacks made from exotic sea shells from the far east
 Vyasheslav Bresht made his first fortune importing luxury cars from Germany
 Michael Weatherly Sr., made a fortune importing the first Swiss Army Knives in to the U.S.
 Morgan Hughes, 86, a native Irishman, made his fortune importing amusement park rides
from Europe after World War II
 Manuel Rionda made his fortune importing sugar from South America
 Trev Deely generated a multimillion dollar empire by importing motorcycles and selling
them in Canada
 Sandy Chadha is a multi-millionaire, and the U.K.’s largest importer and distributor of batteries

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CHAPTER 19: Growing Your Business for Even Bigger Profits

Successful Internet Importers & Exporters


 Shenzhen Technology Rise Microelectronic Co., Ltd. is a privately owned company that
manufactures and exports micro-controllers, voice chips and electronic gifts. The company
is located in Baoan District of Shenzhen
 T. T. Flora Co. in Thailand manufacturers and exports artificial flowers, craft flowers and
bridal flowers and accessories
 Shandong Jumboaudio Research Co., Ltd. manufacturers and exports car speakers,
woofers, boom boxes, PA systems, wall speakers, and other car audio equipment
 Joyful Path in Hong Kong manufactures and exports handbags, cosmetic bags, document
bags and backpacks
 Aristey Fashion in the U.S. is an international exporter and distributor of designer women’s
apparel
 Paranthaman Exporters (India) specializes in drilling rigs for water wells, mining,
exploration and pole drilling. They also manufacture and export hammer bits, rock roller
bits and drilling rods
 Hong Mei Coral Jewelry Factory, based in Taiwan, was founded in 1987; they manufacture
and export coral beads and cabochons, supplying both local and foreign markets
 Bernard Cosmetics manufactures, exports and sells products in the USA, England,
Germany, UAE and Korea
 Zhejiang Wanshengda Industry Co., Ltd. in Mainland China exports playing cards and
notebooks
 Mahanem LLC (U.S.) exports computer and consumer electronics. Their line of products
includes: Apple iPod, CPU, digital cameras, camcorders, projectors, monitors,
motherboards, MP3 players and more
 Shenzhen Jinhuicong Science & Technology Co., Ltd. is one of the largest manufacturers
and exporters of security alarm systems, wireless cameras, fire alarms, radar detectors, and
related products
 Lingying Vehicle Co., exports gas scooters, electric scooters and pocket bikes to markets
around the world
 Xiamen Caixin Inflatable Product Co., Ltd. in the Fujian Province, China, manufactures
and exports inflatable products like bouncers, castles, slides, air tents, air dancers, tunnels,
mascots, arches, pools and balloons
 President Furniture in Indonesia builds and exports high quality teak furniture, teak
outdoor furniture, teak garden furniture, indoor furniture, steamer, chair, table, bench and
patio furniture
 Shandong Yijian Pharmaceutical Co., Ltd. (China) is a major importer of Citicoline Sodium
 Liu’an City Guzhen Feather Craftwork Factory is one of the largest importers of turkey
feathers in the world
All of these entrepreneurs saw a need and filled it by importing products and reselling them, or
exporting products to other countries.

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On top of that, most of them tended to focus on a particular product or market. They typically
did not diversify into multiple product lines.
These entrepreneurs parlayed their wealth and success by applying time-tested principles over
and over, and subsequently their businesses grew exponentially at every stage.
You can do the same things in your import/export business!

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CHAPTER 20: Importing and Exporting Billionaires

CHAPTER 20

Importing and Exporting Billionaires


The world’s billionaire importers and exporters do not approach business the same way as
millionaires do.

In fact, they play at an entirely different level, which includes relationships with government
officials, multinational corporations and “sweetheart” deals.

Even if you don’t have a desire to build your import/export business to this size or depth, there
are still lessons to be learned by watching billionaires play the game.

There are ten specific things that billionaire importers and exporters do in order to generate
mind-boggling profits.

According to Forbes magazine the collective net worth of the world’s 691 billionaires (in 2005) is
$2.2 trillion, up $300 billion from the combined net worth of the 587 people listed in 2004.

Of that number more than half of these billionaires are involved in importing and exporting
products at some level!

Billionaire’s Rule Book:


1) Set Goals (be specific and include dates)
2) Steward Your Health and Wellness
3) Love, Honor and Cherish Your Family
4) Own Markets
5) Identify Formulas (sales, marketing, investing, etc.) —
Apply them repeatedly and do not alter them
6) Understand Your Core Market — Don’t Dabble in Other Markets
Until You Understand Them as Well or Better
7) Generously Reward Results — Penalize Incompetence (swiftly)
8) Diversify Holdings (low risk / medium returns or higher)
9) Aggressively Protect Wealth
10) Charity — Passionately Share Wealth
There are probably more rules but these were complied by researching the world’s foremost billionaires.

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CHAPTER 20: Importing and Exporting Billionaires

Billionaire Importers/Exporters
Rem Vyakhirev - Russia
Natural gas and heavy equipment
$1.5 billion net worth

Max H. Schachenmann
Marble, Agriculture, Concrete
$1 billion

James Moran
Automobiles
$1.4 billion

Michael Ying
Apparel
$1.8 billion

Roustam Tariko
Vodka, Automobiles, Luxury items
$3 billion

Nadim Khoury
Beer
$1 billion

Solomon Lew
Consumer goods
$1.5 billion

Thomas J. Mazzetta
Frozen Seafood
Unknown

Lev Leviev
Diamonds
$2 billion

Li Ka-Shing
Electronics, Tourists, Consumer Goods, Mobile phones
$5 billion

Sidney Frank
Fancy vodka and tequila
$2 billion

Alex Shnaider
Steel
$2 billion

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CHAPTER 20: Importing and Exporting Billionaires

Dhirubhai Ambani
Polyester and spices
$1 billion

Carlos Slim
Oil, industrial equipment
$5 billion

Vijay Mallya
Liquor
$2 billion

Terry Peabody
Fly ash – trucks
$2 billion

Gautam S Adani
Natural resources
$1 billion

Olav Thon
Tabacco
$1.5 billion

All of these billionaire importers and exporters started with an idea. They were convinced they
could make money in this business! You need to be convinced you can make money in this business,
too — and one of the best ways to do that is by taking action.
The conditions are no different today than they were when these entrepreneurs started their
import/export businesses. They all started from somewhere.
But the key is they started — these billionaires took some kind of action toward their goal
or objective.
In the next chapter we’ll show you the importance of focusing on one product or market when
you’re first starting this business. This will keep you from getting sidetracked and it will help to make
your business incredibly simple — and fun!

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CHAPTER 21: Focus on One Product at a Time

CHAPTER 21

Focus on One Product at a Time


One of the fastest ways to get started and be successful in your import/export business is to focus
on one product or product line at a time.

You may be tempted to jump from product to product… but don’t give in to temptation.

The reason it’s important to focus on one product or line at a time is because it helps you to
become more knowledgeable and proficient than your competitors. This proficiency should lead to
greater profits because you will KNOW and UNDERSTAND your market better than anyone.

To repeat: Our recommendation is to keep it simple when you start out and focus on one product
or product line at a time.

After you’re successful in one area, you can expand into additional products and lines.

This is the key strategy that most successful Internet import/export businesses and
entrepreneurs follow.

For example, there is a company in Hong Kong called Jiaxing Maosen Flag Co., Ltd. The company
imports and exports flags. That is the only product they carry. They have thousands of flags of every
shape, color, design, language and purpose.

Another example is Rose Best LLC — they specialize in handmade soaps. The company carries
hundreds of different sizes, shapes, colors and scents. They ship worldwide.

Thai Mountain Imports focuses on bamboo and wicker furniture. They export their products
around the world.

It will be easy to avoid the temptation to “jump around” from product to product when your first
few deals are successful. You’ll see the value and benefit of focusing on products you really enjoy, or
products where there is a tremendous demand.

If a particular product or product line is not moving — you can easily shift into new products! That
is one of the greatest advantages of an import/export business. You can move into a new product line
at a moment’s notice, and that’s especially true if you’re not entangled in large inventories.

The following is a list of companies and the products they have focused on:

Yuyao Jinwei
Sprayers

Avasin
Computers

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CHAPTER 21: Focus on One Product at a Time

Galleon Trade Pan Pacific Ventures Corp.


Scrap metal

Shaul Barnea Ltd


Computer memory

China Guangzhou eFiver Electronics Co., Ltd


Batteries

Seasons & Fashions


Garments

Cybercraze
Computer accessories

Fujian Xiamen Yongqing Trade Co., Ltd


Poly resin

Kaki Zawa Enterprise Co., Ltd.


Brown sugar

Frontier Enterprises
Heavy equipment

J D Overseas
Handicrafts

Sun Nonwoven & Paper


Non woven products (like baby wipes)

Sita Sourcing
Solid wood furniture

Raf Unique Ventures


Office supplies

Dimensionx Inc.
Mobile phones

Ghozat Poultry Units Co.


Poultry products

Sportsmoto
Watches

KCF Trades & Exports


Chemicals

Herbalbd
Herbs

Susheela Fertilizers & Pesticides


Fertilizers and Pesticides

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CHAPTER 21: Focus on One Product at a Time

Stileks
Steel billets

Yu-va Gida Temizlik Turizm Insaat


Cable

Asrar Supply Services


Food additives

J. L Trade Co. Ltd


Home appliances

Jubin Part Chemico


Inorganic chemicals

Transaria
Audi parts

Dejen Enterprise
Agriculture products

K2B Agency
Contact lenses

Tuzgolu Otomotiv Ltd.


Lamps and bulbs

Sinoz Company
Ceramics

Azadsystemnet
Iranian carpets and rugs

Aman Trading Co
Nuts

Hua Bags
Handbags / accessories

Concept International Inc.


Jewelry

Zhejiang Shuangling Socks Co, Ltd.


Socks

2kmg Corp.
Yarn

PT. Astura
Fruit juice

Bella Bisque Inc.


Italian pottery

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CHAPTER 21: Focus on One Product at a Time

Sangho Ceramic Co.,Ltd.


Ceramic products

Zibo OceanFar General Merchandise Co., Ltd.


Glassware

Shikha International
Bottles of every color and type

Tianjin Tianrui Animal By-Products Co., Ltd.


Animal by-products, wool, cashmere

Marble Unique Inc.


Marble statues

Shenzhen Shinefull Shell Industrial & Trading Co., Ltd.


Sea shells from around the world

Herbgate Co., Ltd


Eels

Kabir Sports
Gloves for work, sports and welding

GPS Trading
Lingerie

Dollmac Trading Co.


Baby clothes and accessories

Chumsangthai Goldrice Ltd


Thai rice

Kenrico Ltd.
Detox pads

Power Drinks SL
Energy drinks

Rommel EMC
Refurbished notebooks

AGRICOLA GUARANI SRL


Forestry products

Ivand Trading Co.


Dried fruits

GM Gateway Co.
Electronics

CWL Import
Food and confections

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CHAPTER 21: Focus on One Product at a Time

Jinoo Corp.
Fabrics

DCF Enterprises
Clothes / jeans

Viet Tra Co. Ltd


Handbags/scarves

Prowell Company
Metals

These companies focus on one product or product line — and they are very successful.
If you adapted a similar strategy and focused on one product it would not only simplify your
business… it would help establish you as an expert in that area.
In the next chapter we’ll include valuable trade resources to help you build your business,
contacts and expertise.

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CHAPTER 22: Trade Resources

CHAPTER 22

Trade Resources
In this section we are providing more than 100 trade resources to help you establish contacts,
further your education and build your import/export business.
These trade resources will also help you to find products, buyers, sellers, ecommerce, online
stores, web hosting and trade organizations.
We’re confident you’ll come back to this section again and again to find the information you need
to be successful.

Federation of International Trade Associations


http://www.fita.org

Boletin.net (directory of importers/exporters/manufacturers)


http://www.boletin.net

BuySellOffers (directories of importers/exporters)


http://www.buyselloffers.com

ChinaBig Global (Directory of 1 million businesses worldwide)


http://gtdchina.yp.com.hk

Export Focus (directory of resources)


http://www.exportfocus.com

Global Importers Directory


http://www.export-import-companies.com

Importer List
http://www.importerlist.com

Online International Business Information Directory


http://www.b2b-bestof.com

TOBOC – International Trade Leads


http://www.toboc.com

Foreign Trade Online (massive import/export resource)


http://www.foreign-trade.com

TradeKey
http://www.tradekey.com

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CHAPTER 22: Trade Resources

Asian Product Directory


http://www.asianproducts.com

Trade India (product directory)


http://www.trade-india.com

New York International Gift Fair


http://www.nyigf.com

San Francisco International Gift Fair


http://www.sfigf.com

Toronto International Gift Fair


http://www.torontointernationalgiftfair.com

World Trade Show Directory


http://www.worldtradeshow.com

Hong Kong Electronic Fair


http://hkelectronicsfair.com

Jinhan Fair for Textiles, Garments and Fabrics


http://www.jinhanfair.com

Canton Fair
http://www.cantonfair.org.cn

Productronica
http://www.productronica.de

Shenzhen International Toys and Gifts Fair


http://www.szsinoexpo.com

Export911 (Trade education and resources)


http://www.export911.com

GoEastDirect
http://www.goeastdirect.com

International Universal Currency Converter


http://www.xe.com

International Business and Personal Credit Checks


Experian
http://www.experian.com

Equifax
http://www.equifax.com

TransUnion
http://www.transunion.com

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CHAPTER 22: Trade Resources

BBBOnline
http://www.bbbonline.org

Top Auction Sites –


(For Selling Imported/Exported Goods Online)
eBay
http://www.ebay.com

uBid
http://www.ubid.com

Bidz.com
http://www.bidz.com

Overstock.com
http://auctions.overstock.com

Bidstar
http://www.bidstar.net

Auction.com
http://www.auction.com

Yahoo! Auctions
http://auctions.yahoo.com

MSN Shopping
http://shopping.msn.com

Froogle Shopping
http://www.froogle.com

Amazon.com Auctions
http://www.amazon.com

Half.com
http://www.half.com

Sotheby’s
http://search.sothebys.com

Christie’s
http://www.christies.com

Biddington’s
http://www.biddingtons.com

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CHAPTER 22: Trade Resources

Liquidation.com
http://www.liquidation.com

Taobao (China’s largest auction site)


http://www.taabao.com

eBay China (American products are very hot)


http://www.ebay.com.cn

Daily Bidz
http://www.dailybidz.co.uk

Free Web Hosting


DotEasy
http://www.doteasy.com

Be-Hosted
http://www.be-hosted.com

Blogger.com
http://www.blogger.com

Yahoo! Geo Cities


http://geocities.yahoo.com

50Megs
http://www.50megs.com

Free Web Hosts


http://www.free-webhosts.com

FreeWebs
http://members.freewebs.com

The Free Site


http://www.thefreesite.com

The Homestead
http://www.homestead.com

Bravenet
http://www.bravenet.com

Web Spawner
http://www.webspawner.com

eCommerce Web Hosting


HostMySite
http://www.hostmysite.com

Start Your Own Internet Import/Export Business 101


CHAPTER 22: Trade Resources

ValueWeb
http://www.valueweb.com

SuperbHosting
http://www.superbhosting.com

Apollo Hosting
http://www.apollohosting.com

BlueHost
http://www.bluehost.com

Globat.com
http://www.globat.com

Shared Web Hosting


Velcom.com
http://www.velcom.com

APlus.net
http://www.aplus.net

Exists Hosting
http://www.existhosting.com

Host Gator
http://www.hostgator.com

Ready Hosting
http://www.readyhosting.com

StartLogic
http://www.startlogic.com

eCommerce Shopping Carts (for online stores)


Fortune 3
http://www.fortune3.com

Mighty Merchant
http://www.mightymerchant.com

Actinic eCommerce Software


http://www.actinic.co.uk

Bazaar Builder
http://www.bazaarbuilder.com

CubeCart
http://www.cubecart.com

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WirePlanet
http://www.wireplanet.com

Lite Commerce
http://www.litecommerce.com

Smart Shop
http://www.smart-shop.com

Charge.com
http://www.charge.com

Just Add Commerce


http://www.richmediatech.com

Product Cart by Early Impact


http://www.earlyimpact.com

eCom Pal
http://www.ecompal.com

Mal’s eCom (great for static websites)


http://mals-e.com

Americart
http://www.cartserver.com/americart

PrestoStore
http://www.prestostore.com

Plexxa
http://www.plexxa.com

ePay
http://www.epay.com

Important note: Not all shopping carts and online stores are created equal. One of the best
forums on the Internet can be found on Webmaster World http://www.webmasterworld.com
Contributors include the people that develop, program and use ecommerce applications and
storefronts on a daily basis.

Alibaba.com Resources Channel


Alibaba.com Discussion Lists and Forums
http://resources.alibaba.com/discussion_board/11/General_Trade_Discussions.htm

Alibaba.com Tutorials
http://resources.alibaba.com/discussion_board/22/Tutorials.htm

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CHAPTER 22: Trade Resources

Alibaba.com Shipping Tutorials


http://resources.alibaba.com/trade_essential/a101/Shipment_Delivery.htm

Alibaba.com Financing Tutorials


http://resources.alibaba.com/topic/forumList.htm?forum=4

Alibaba.com Online Security Tutorials


http://resources.alibaba.com/trade_essential/10/online_security.htm

U.S. Government Resources


FirstGov
http://www.firstgov.gov

FedStats
http://www.fedstats.gov/toolkit.html

IRS
http://www.irs.gov

U.S. Department of Commerce


http://www.commerce.gov

International Trade Administration


http://www.ita.doc.gov

Federal Citizen Information Center


http://www.pueblo.gsa.gov

United States Customs Service


http://www.customs.gov/

CIA World Factbook


http://www.cia.gov

In the next chapter we have assembled a comprehensive resource of standard forms, contracts
and agreements.
In addition, you will find shipment inspection forms, letter of credit information and the basics
of extending credit to buyers.
We have also provided information for obtaining financing from import/export banks to further
your business expansion.
We’re confident you will find this section extremely beneficial to your import/export business.

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CHAPTER 23

Standard Forms, Contracts and Agreements


This section can be a little overwhelming.
But keep in mind that not all of these forms, contracts and agreements are necessary in every
situation. This information is simply provided as ancillary information in case you should need it at
some point in your import/export business.
In most cases you can begin doing business on the Internet immediately. All of these forms,
contracts and agreements will not be required. But if they are required or needed you will have the
information here at your fingertips.

Shipment Inspections
Governments or buyers demand inspection reports for a number of reasons:
 To ensure shipments do not contain illegal or low-quality merchandise
 To make sure importers are properly declaring their goods
 To ensure they have received what they have paid for or are about to pay for (usually by
independent inspection)
The process typically starts with the buyer. Once a contract between a buyer and seller has
been established, the importer or buyer will arrange with their favorite inspection company
a pre-shipment inspection. Although some countries require a specific company to perform
the inspection, others have opened it up to a variety of competitors.
Upon requesting an inspection, the following information needs to be given to the
inspecting company:
 Company name and contact name of the exporter and the type and location of the goods
to be inspected.
Note: Regarding the time of the inspection, inspectors have busy schedules and need a five
to seven day window to schedule a visit. Once you have a tentative date for inspection you
need to have the goods ready for inspection. This may mean opening the shipping unit or
having the container staged and ready to load.
 Many “Less than Container Load (LCL)” shipments can be inspected at the port of export
 It is recommended that the inspection take place where you can supervise and answer
questions the inspector might have
 You may also need to close up a crate or box following the inspection so it is best that you
are or your forwarder is available to assist during the examination

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 Following the inspection, a “Clean Report of Findings” (or something similar) will be issued.
This is usually required at the time of import. Most reports are issued following proof of
export and usually can be completed by fax
The importer usually pays the costs for such examinations; however, delays can be invoiced
directly to the exporter.
The inspector will look at the following aspects of the products in the shipment:
 Safety
Are the products compliant with applicable safety regulations?
 Performance
Does the product function properly, and as intended?
 Appearance
What is the condition of the finish, printing and marking?
 Packaging
Is the condition of packing, marking and accessories appropriate?

Sample inspection form:

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Quality control and compliance


When purchasing volume goods internationally, there are many areas in the process where you
should conduct checks on your prospective suppliers.
 The first one is during the discovery and negotiation process when you are deciding which
supplier to go with. More often than not, the prospective supplier will indicate whether he
or she has achieved ISO accreditation for their products. See below for details:
 The other very important stage in quality checking is prior to shipment. You need to engage
the services of an inspection officer to go through the shipment to check and see if what you
are about to receive is what you paid for.

International Organization for Standardization (ISO)


ISO (International Organization for Standardization) is the world’s largest developer of standards.
ISO has built a strategic partnership with the WTO (World Trade Organization), with the common
goal of promoting a free and fair global trading system. Between 1947 and the present day, ISO has
published more than 15,000 International Standards.
Although ISO’s principal activity is the development of technical standards, ISO standards also
have important economic and social repercussions. ISO standards make a positive difference, not just
to engineers and manufacturers for whom they solve basic problems in production and distribution,
but to society as a whole.
 ISO:9000 is concerned with “quality management.” This means what an organization does
to enhance customer satisfaction by meeting customer and applicable regulatory
requirements and continually to improve its performance in this regard.
 ISO:14000 is primarily concerned with “environmental management.” This means what an
organization does to minimize harmful effects on the environment caused by its activities,
and to continually improve its environmental performance.

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Documents against Payment (D/P) flow diagram


Documents against Payment/Bill of Exchange flow diagram
(Courtesy of Wiley Publishing)

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Letter of Credit (L/C) transactional flow diagram


Letter of Credit Flow diagram:
(Courtesy of Wiley Publishing)

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When buyers don’t pay: reduce your non-collection risk


In international trade, there are differing reasons why you may experience a buyer defaulting on
payment. A buyer may have a legitimate complaint regarding an incorrect shipment. There may be a
problem with the banks facilitating payment. Or a buyer may simply have decided not to pay for their
goods. Regardless of the reason(s), there are some things you, as a supplier, can do to reduce this risk:
 It is a general rule that before international trade is conducted, both parties should always
engage in some *formal and informal “checks” of the other party (see below).
 It is always wise to have insurance against payment defaults, but be aware that you
must exhaust all reasonable means of collecting payment before an insurance claim
will be honored.
 It also considered wise to select or suggest payment options, which reduce your exposure to
financial loss, especially if you are dealing with a buyer for the first time. From the wide
range of payment options available, the most popular among suppliers is Telegraphic
Transfer (T/T) payment in advance, which means the payment is sent to you before you
order shipment of products.
Another option is to select a payment process, which works both in favor of the buyer and seller.
Letters of credit distribute risk evenly.

Formal and Informal Checks


Common sense approaches to finding genuine buyers
A long-held concern for many suppliers both experienced and new is that inquiring buyers might
be showing interest only for price comparison purposes.

Alibaba.com’s sellers’ advice for dealing with buyers is summarized below:


1. Pay more attention to those emails, which are highly specific, as this can be an indicator
of authenticity.
2. Distinguish authentic buyers via communication (chat, phone, fax, email) by asking
questions regarding:
 Product specifications
 Technical requirements
 Acceptable pricing
 Required quantity
 Brand history
 The number and type of companies with which they have cooperated with in the past
 How long they have been in business
3. Business cards from buyers provide information, including:
a. Where their company is located in their city

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b. How many telephone lines they have


c. Whether they have their own website or whether they do e-commerce through
free services
d. Whether they are retailers, wholesalers, importers or agents, or any combination
4. Give careful attention to product inquiries outside of your usual product categories. One
reason is that the buyer typically cannot find a supplier who can match his requirements.
This is a good opportunity for you. On the other hand, even if you do not get an order, you
can gauge market demand and technical standards for new products. This information is
normally very hard to get.

Popular payment methods in international trading

Popular payment methods


There are many ways to make and receive payment in international trade. Due to the physical
distances between buyer and seller, and the fact that the transaction may have taken place without
the two parties actually meeting, minimizing exposure to risk is on the minds of both parties. The
buyer wants to make sure they receive their order in acceptable condition and on time, and the seller
needs to know they will get paid for it.

Allocation
Payment Details of Risk
TT or Cash T/T is the easiest payment form and is typically used when
Advance samples or small quantity shipments are transported by air.
T/T is also used between buyers and sellers who have already
established a mutual trust, as this negates the risks associated
with this, the fastest and cheapest form of payment.
Documents like air waybills, commercial invoices and 100%
packing lists will be sent to you along with the shipment in the buyer risk
same aircraft.
As soon as the shipment arrives, you, with documentation, can
clear the customs and pick up the goods. Shipping happens
only after the money is safely in seller’s bank account. It usually
takes 3-4 days for such a wire transfer anywhere in the world.

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Allocation
Payment Details of Risk
Letter of Credit The L/C is a guarantee, given by the buyer’s bank that they will
(L/C) pay for the goods exported, provided that the exporter can
provide a given set of documents in accordance with clauses
specified in the L/C and in a timely manner.
The technical term for letter of credit is “Documentary Credit.”
Letters of credit deal in documents, not goods. Thus, the
process works both in favor of both the buyer and the seller.
Evenly
Simply put, a letter of credit is a letter written by the importer’s shared
bank to the exporter. It verifies that the payment will be
guaranteed when the bank is presented with concrete
documents (bills of lading and freight documents).
Most letters of credit are “irrevocable” once the importer has
had them sent, which means it cannot be changed unless both
the buyer and seller agree.

Escrow Escrow is a legal arrangement (and most commonly a payment


arrangement) whereby money is delivered to a third party (called
an escrow agent) to be held in trust (“in escrow”) pending the
fulfillment of condition(s) in a contract, whereupon the escrow
agent will deliver the payment to the proper recipient. Typically,
escrow is used when the Buyer and Seller are unknown to
each other.
In an international trade context, after the Buyer and Seller have Evenly
agreed to the transaction, the buyer puts the payment in escrow shared
by paying the escrow agent, which both parties have agreed to
use. The seller sends the shipment and upon acceptance by
the buyer, the escrow agent releases the payment to the seller.

Document (D/P) The exporter ships the goods, and then gives the
Against documents (including the bill of lading necessary to claim the
Payment/Bill of goods at the foreign port) to his bank, which will forward them to Mainly with
Exchange a bank in the buyer’s country, along with instructions on how to supplier
collect the money from the buyer.
When the foreign bank receives the documents, they will
contact the buyer and provide documents to the buyer only
when the buyer pays.

Open Account Opposite situation to T/T: The exporter receives payment only 100%
after the buyer has received and inspected the goods. seller risk

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Approaching the lender and understanding lender practices


How they rate you
Obviously, the lender will do comprehensive checks on your business and products. It is
advisable to have a detailed export plan ready and be able to clearly show how and when a loan will
be repaid. The typical information required might include some or all of the following:
 Year end financial statements for the last three years on the business and copies of signed
tax returns
 Current interim financials, normally not older than 90 days
 Personal financial statements on all owners with 20% or more of the company’s shares and
copies of each of their last three years’ individual tax returns
 Product literature/business plan or narrative on how the business is operated, number of
products produced and sold to indicate proof of ability to perform
 Resumes on key management
 Financial projections (P&L) and a cash flow statement
 Proof that 50% of content in the product(s) originates in the country of export
 Purchase order copies from foreign buyers
 Information on foreign buyers and their ability to pay

What you can do


Likewise, you should hunt around for the best loan, as well as the institution which understands
what you want to achieve through export.
Ask the following questions:
 What are the charges for confirming export documentation (letters of credit, processing
drafts, and collecting payments)?
 Does the bank have foreign branches or affiliate banks? If so, where are they located?
 Can the bank provide buyer credit reports? At what cost?
 Does the bank have experience with your federal and state government financing programs
that support small business export transactions? If not, is it willing to consider participating
in these programs?
 What other services can the bank provide?

The basics of extending credit to buyers


Frequently, buyers ask for extended credit terms and/or financing to purchase your goods, but
few exporters can manage the cash flow issues or commercial risks without assistance caused by
these types of contracts. This called “term financing.” Buyer credit programs typically provide loan
guarantees to commercial lenders. This kind of program benefits all the parties involved:
 Exporter benefits: paid cash on delivery and acceptance of the product or service

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 Buyer benefits: extended credit terms


 Lender benefits: guarantees, many backed by the government, for full repayment of the loan

A general overview of the nature of loans


 Trade finance generally refers to financing individual, self-liquidating transactions. Self-
liquidating means the bank collects payment for the transaction it has helped to finance.
This is used to redeem the money lent to the exporter. The remainder is credited to the
exporter’s account.
 Pre-shipment financing is granted to the exporter to enable him to cover costs of
manufacturing or shipment.
 Working capital loans, which are associated with pre-shipment financing, are designed to
cover more long-term operating costs related to a sales order or contract, specifically in the
areas of labor, materials and inventory.
 Lenders also engage in Post-shipment financing where a bank or government agency
extends a cash advance to the exporter against the security of billing instruments
representing the goods shipped, pending payment by the importer.
 It is recommended that promotion financing, such as that needed to attend trade shows,
come from the working capital of the firm.

For sellers: obtaining export financing


Export financing
Trade finance is a specific topic within the financial services industry. It refers both to loans
sought by exporters (pre- or post- shipment) as well as to the extension of credit to importers, which
enables them to purchase from exporters. Exporters can obtain financing from either commercial
banks or governmental agencies looking to encourage SME (small to medium enterprise) export:
 Large multi-national banks are generally thought to be the most experienced in trade
finance, but these banks are less interested in working with small businesses because of the
smaller deal sizes and volumes accompanied by greater risk. Even SMEs with large trade
deals are not attractive to larger banks due to risk and credit issues.
 Federal and local government agencies offer programs to assist exporters with their
financing needs, which include the provision of loans or grants, as well as improving an
exporter’s access to credit. Government guarantee and insurance programs are used by
commercial banks to reduce the risk associated with loans to exporters.

Resolving payment problems with buyers


If a payment problem occurs, you will want to resolve the issue as quickly as possible with the
buyer. You first need to get a good understanding of the entire situation before seeking dispute
resolution assistance. Ask:
 Were the goods supplied per the contract/invoice?
Are all your shipping and customs documents in order?
Was there damage or theft?
 Have you attempted to negotiate a solution to the problem, along with a payment plan or

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future concessions to the buyer?


Have you discussed your problem with your bank and your lawyer?
Do you have copies of all correspondence and records related to the dispute?
 Help with payment disputes
If you have come to the point where negotiations with the buyer are not leading to a resolution
and you are determined to collect, you will have to turn to the advice of your bank, legal adviser and
perhaps other advisory bodies involved in mediation, arbitration or even litigation.
The International Chamber of Commerce handles the majority of international arbitration and is
usually acceptable to foreign companies because it is not affiliated with any single country.

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TERMINOLOGY: A Glossary and Definition of Import/Export Acronyms

TERMINOLOGY

A Glossary and Definition of


Import/Export Acronyms

TERM -ACRONYM DEFINITION

ABI Automated Broker Interface - a part of Customs Automated Commercial


System, permits transmission of data pertaining to merchandise being
imported into the U.S. Qualified participants include brokers, importers,
carriers, port authorities and independent data processing companies
referred to as service centers.

ACE Automated Commercial Environment - Part of Customs Automated


Commercial System which controls imported merchandise from the time a
carrier’s cargo manifest is electronically transmitted to Customs until control
is provided to another segment of the ACS.

ACH Automated Clearinghouse - The Automated Clearinghouse (ACH) is a feature


of the Automated Broker Interface that is a part of Customs Automated
Commercial System. The ACH combines elements of bank lock box
arrangements with electronic funds transfer services to replace cash or check
for payment of estimated duties, taxes and fees on imported merchandise.

ACS Automated Commercial System - The Customs Automated Commercial


System, ACS, is a joint public-private sector computerized data processing and
telecommunications system linking customhouses, members of the import
trade community and other government agencies with the Customs
computer. Trade users file import data electronically, receive needed
information on cargo status and query Customs files to prepare submissions.
Duties, taxes and fees may be paid by electronic statement through a Treasury-
approved clearinghouse bank. ACS contains the import data used by Census
to prepare U.S. foreign trade statistics.

Ad Valorem Duty Duty imposed on imported merchandise based on a percentage of the value.

ADD Antidumping duty - A tariff imposed to discourage sale of foreign goods at less
than a fair market price that would be detrimental to local manufacturers.
See Dumping.

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TERM -ACRONYM DEFINITION


Air Waybill A bill of lading that covers both domestic and international flights transporting
goods to specified destination. Technically, the air waybill is a non-negotiable
instrument of air transport that serves as a receipt for the shipper, indicating
that the carrier has accepted the goods listed therein and obligates itself to
carry the consignment to the airport of destination according to specified
conditions.
All Risk Extensive insurance coverage of cargo including coverage due to external
causes such as fire, collision, pilferage, etc., but does not include special risks
such as those resulting from acts of war.
AMS Automated Manifest System
APEC Asia Pacific Economic Cooperation
APHIS A branch of the USDA, the Animal Plant Inspection Service provides
leadership in ensuring the health and care of animals and plants, improving
agricultural productivity and competitiveness and contributing to the national
economy and the public health.
Appraisement The determination, by a proper Customs official, of the dutiable value of
imported merchandise following procedures outlined in the Tariff Act of 1930,
as amended.
Arrival Notice This notice, which advises the consignee that cargoes have arrived, is issued by
steamship lines and can also serve as the freight bill.
ASEAN Association of Southeast Asian Nations
Assist Items furnished to the producer either free of charge or at a reduced amount
or used in the production of merchandise that will be imported. Examples
include tools, dies, and molds. Artwork performed in the U.S. is not
considered an assist. The value of an assist
ATPA Andean Trade Preferences Act
AWB Air Waybill
BEET Business Executives Enforcement Teams
BIS Bureau of Industry and Security
BL Bill of Lading - A contract between the owner of the goods and the carrier.
There are primarily two types of ladings. A straight bill of lading is
nonnegotiable. A negotiable or shipper’s order bill of lading can be bought,
sold, or traded while goods are in transit and is used for letter of credit
transactions. The customer usually needs the original or a copy as proof of
ownership to take possession of the goods.
Bonded Warehouse A warehouse authorized by Customs authorities for storage or manufacture of
goods on which payment of duties is deferred until the goods enter Customs
territory. The goods are not subject to duties if reshipped to foreign points.

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TERM -ACRONYM DEFINITION

Bureau of Census - In relationship to imports, the DOC has two primary interests. The first
Department of interest pertains to the Committee for Implementation of Textile Agreements
Commerce (CITA) which regulates certain textile imports under Section 204 of the
Agricultural Adjustment Act. The second area of interest involves the
collection of statistical data from import shipments.

Buying Commission A buying commission consists of any monies paid to the buyer’s agent, who is
controlled by or works on behalf of the buyer.

CACM Central American Common Market

Cargo Selectivity The Cargo Selectivity System, a part of Customs Automated Commercial
System System, specifies the type of examination (intensive or general) to be
conducted for imported merchandise. The type of examination is based on
database selectivity criteria such as assessments of risk by filer, consignee,
tariff number, country of origin and manufacturer/shipper.

CARICOM Caribbean Common Market

Carnet Customs documents permitting the holder to carry or send sample


merchandise temporarily into certain foreign countries without paying duties
or posting bonds. A carnet serves as both the entry document and a Customs
bond.

Cartage Movement of freight via trucking, draying or carting.

CBERA Caribbean Basin Economic Recovery Act

CBI Caribbean Basin Initiative

CCL Commerce Control List

Certificate of Origin Certain nations require a signed statement as to the origin of the export item.
Such certificates are usually obtained through a semiofficial organization such
as a local Chamber or Commerce. A certificate may be required even though
the commercial invoice contains the information.

CF 3461 - All imported merchandise (other than merchandise admitted into a FTZ) must
Immediate be released by U.S. Customs before it can be received by the
Release importer/consignee. The CF 3461, Immediate Release, is the form used to
obtain the proper release from Customs.

CFTA Canada Free Trade Agreement

Classification Classification is the categorization of merchandise according to the


Harmonized Tariff Schedules of the U.S. Classification affects the duty status
of imported merchandise. Simplified, it is the process of finding the tariff
classification which best describes the imported good.

CM Contract Manufacturer

CMC Customs Management Center

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TERM -ACRONYM DEFINITION


Compound Duty Tax imposed on imported merchandise based on a percentage of value and
also on the net weight or number of pieces, etc.
Consignment Delivery of merchandise from an exporter (the consignor) to an agent (the
consignee) under agreement that the agent sell the merchandise for the
account of the exporter. The consignor retains title to the goods until sold. The
consignee sells the goods for commission and remits the net proceeds to the
consignor.
Consignor The person or company shown on the bill of lading as the shipper.
Consolidation The combination of many small shipments into one container, often with
more than one destination/consignee.
Consumption Entry Required by U.S. Customs for goods entering the United States. Information
on the form includes cargo origin and description and estimated duties, which
must be paid at the time the document is filed.
Container Single rigid, sealed, reusable metal box in which merchandise is shipped by
vessel, truck or rail.
Container Freight Facility used by ocean carriers to load/unload cargo to and from containers.
Station (CFS) Most less-than-container-load lots of cargo are either packed into or de-
vanned at the CFS.
Country of Origin Country where merchandise was grown, mined or manufactured.
Customs Broker Individual or firm licensed by Customs to enter and clear goods on behalf of
others through Customs.
Customs Territory Includes the States, the District of Columbia and Puerto Rico
CVD Countervailing Duty - A special duty imposed on imports to offset the benefits
of subsidies paid to producers or exporters in the exporting country
Date of Exportation The actual date the merchandise leaves the country of exportation for the U.S.
DCS Destination Control Statement
Demurrage Excess time taken for loading or unloading a vessel. Demurrage refers only to
situations in which the charter or shipper, rather than the vessel’s operator, is
at fault.
Devanning Unloading of cargo from a container.
DOC Department of Commerce
Dock Receipt A dock receipt is used to transfer accountability when the domestic carrier
moves the export item to the port of embarkation and left with the
international carrier for export.
DOD Department of Defense
DOE Department of Energy

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TERM -ACRONYM DEFINITION

Domestic Status Domestic status material is Growth, product, or manufacture of the U.S. on
which all IRS taxes have been paid.
 Previously imported and on which duty and tax have been paid.
 Previously entered free of duty and tax.

DOS Department of State

DPL Denied Persons List

Drawback Refund of all or part of Customs duties paid on imported merchandise, which
was subsequently either manufactured into a different article or re-exported.

DTRA Defense Threat Reduction Agency

Dumping The sale of a commodity in a foreign market at less-than-fair value. Dumping


is generally recognized as an unfair practice because the practice can disrupt
markets and injure producers of competitive products in an importing
country. Article VI of the GATT permits imposition of antidumping duties
equal to the difference between the price sought in the importing country and
the normal value of the product in the exporting country.

Duty Tax levied by the government on the import, export or consumption of goods
and usually based on the value of the goods or some other factors such as
weight or quantity or a combination of both.

EAA Export Administration Act

EAR Export Administration Regulations

EC/EU European Community/European Union

ECCN Export Control Classification Number

EFTA European Free Trade Association

EL Entity List

EMS Export Management System

EPCI Enhanced Proliferation Control Initiative

FACR Foreign Assets Control Regulations

FDA Form 2877 Declaration for Imported Electronic Products Subject to Radiation Control

FDI Foreign Direct Investment

FMS Foreign Military Sales

Foreign Inland Freight Foreign inland freight consists of the charges to move the freight from the
foreign factory to the place of loading. Foreign inland freight charges are
dutiable unless the terms of sale are “ex-factory” or the charges were incurred
incident to the international shipment.

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TERM -ACRONYM DEFINITION


Freight Forwarder An independent business which assembles, collects and consolidates less-
than-truckload freight. Also, a person acting as an agent in the transshipping
of freight to or from foreign countries and the clearing of freight through
Customs for compensation.
FTAA Free Trade Area of the Americas
FTSR Foreign Trade Statistics Regulations
GATS General Agreement on Trade in Services
GATT General Agreement on Tariffs and Trade
GDP Gross Domestic Product
GSP Generalized System of Preferences
Harmonized Tariff The Harmonized Commodity Description & Coding System (or HTS) is a
System (HTS) system for classifying goods in international trade, developed under the
direction of the Customs Cooperation Council. Beginning on January 1, 1989,
the new HS numbers replaced previously adhered-to schedules in over 50
countries, including the United States. For the United States, the HTS numbers
are the numbers that are entered on the actual export and import documents.
Any other commodity code classification number (SIC, SITC, end-use, etc.) is
just rearrangements and transformations of the original HS numbers.
House Air Waybill Contains all the information of an air waybill but is not a financial document.
This is a contract between the shipper and freight forwarder. All the shipments
covered by the individual house air waybills are consolidated, and a single air
waybill is issued to cover the consolidated shipment.
IC Import Certificate
IEEPA International Emergency Economic Powers Act
Immediate Delivery Customs entry procedure that provides for immediate release of a shipment
prior to the arrival of merchandise although the merchandise must arrive
within the port limits for the release to take effect. The entry summary with
duties must be filed within 10 working days after release.
Importer Number Identification number assigned by the Customs Service to track importers,
usually IRS number for the company.
In bond Procedure under which goods are transported or warehoused under Customs
supervision until they are either formally entered into Customs territory and
duties paid or until they are exported.
Incoterms Maintained by the International Chamber of Commerce (ICC), this
codification of terms is used in foreign trade contracts to define which parties
incur the costs and at what specific point the costs are incurred.
Informal Entry The informal entry is a simplified import entry procedure for most
commercial shipments not over $2,000 in value. The statutory limit for
informal entries is actually $2,500.

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TERM -ACRONYM DEFINITION

Insurance Certificate This certificate is used to assure the consignee that insurance is provided to
cover loss of or damage to the cargo while in transit.

Intensive Exam An intensive exam result means that Customs wants to physically examine the
merchandise. Inspectors have the ability to “override” some intensive exams
and convert them to general exams.

IPR Intellectual Property Rights

ITA Information Technology Agreement

IVL Individual Validated License

L/C Letter of Credit - A financial document issued by a bank at the request of the
consignee guaranteeing payment to the shipper for cargo if certain terms and
conditions are fulfilled. Normally, the letter of credit contains a brief
description of the goods, documents required, a shipping date, and an
expiration date after which payment will not longer be made.

LCL Less than container load

Liquidation System The Liquidation System, a part of Customs Automated Commercial System,
closes the file on each entry and establishes a batch filing number which is
essential for recovering an entry for review or enforcement purposes. An entry
liquidation is a final review of the entry. The process of liquidation is
currently under revision by the Customs Service.

Marine Cargo Insurance Broadly, insurance covering loss of, or damage to, goods at sea. Marine
insurance typically compensates the owner of merchandise for losses in excess
of those which can be legally recovered from the carrier. Losses may include
fire, shipwreck, piracy, inclement weather and various other causes.

Marking (or Marks) Letters, numbers and other symbols placed on cargo packages to facilitate
identification.

Marks of Origin The physical markings on a product that indicate the country of origin where
the article was produced. Customs rules require marks of origin of most
countries.

MERCOSUR Southern Common Market

MLA Manufacturing License Agreement

Mod Act The Customs Modernization Act is a comprehensive effort by the U.S.
Customs Service to streamline and automate the commercial operations and
improve compliance with Customs laws and regulations.

MOU Memorandum of Understanding

MPF Merchandise Processing Fee is a fee assessed for formal entries based on 0.21%
of the invoice value, with a minimum of $25 per formal entry and a maximum
of $485.

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NAFTA North American Free Trade Agreement. A free trade agreement that comprises
Canada, the U.S. and Mexico, exceeding 360 million consumers and a
combined output of $6 trillion—20 % larger than the European Community.

NATO North Atlantic Treaty Organization

NDA Non-disclosure Agreement

Net Weight Weight of the goods alone without any immediate wrappings (e.g., the weight
(Actual Net Weight) of the contents of a tin can without the weight of the can).

NIS Newly Independent States of the ex-Soviet Republic.

NVOCC Non-Vessel Operating Common Carrier: A cargo consolidator of small


shipments in ocean trade, generally soliciting business and arranging for or
performing containerization functions at the port.

OAC Office of Antiboycott Compliance

Ocean Bill of Lading A receipt for the cargo and a contract for transportation between a shipper and
the ocean carrier. It may also be used as an instrument of ownership which can
be bought, sold, or traded while the goods are in transit. To be used in this
manner, it must be a negotiable “Order” Bill-of-Lading. A Clean Bill-of-Lading
is issued when the shipment is received in good order. If damaged or a
shortage is noted, a clean bill-of-lading will not be issued. An On Board Bill-of-
Lading certifies that the cargo has been placed aboard the named vessel and is
signed by the master of the vessel or his representative. On letter of credit
transactions, an On Board Bill-of-Lading is usually necessary for the shipper to
obtain payment from the bank. When all Bills-of Lading are processed, a ship’s
manifest is prepared by the steamship line. This summarizes all cargo aboard
the vessel by port of loading and discharge. An Inland Bill-of-Lading (a waybill
on rail or the “pro forma” bill-of-lading in trucking) is used to document the
transportation of the goods between the port and the point of origin or
destination. It should contain information such as marks, numbers, steamship
line, and similar information to match with a dock receipt.

OECD Organization for Economic Cooperation and Development

OFAC Office of Foreign Assets Control

Open Insurance A marine insurance policy that applies to all shipments made by an exporter
over a period of time rather than to a single shipment.

Packing Costs Packing costs are defined as “the cost of all containers (except instruments of
international trade) and coverings of whatever nature or materials used in
placing merchandise in condition, packed and ready for shipment to the
United States.

Packing List A list showing the number and kinds of items being shipped, as well as other
information needed for transportation purposes.

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Paperless A paperless result indicates that the merchandise is low risk from a compliant
importer. The broker places a stamp on the CF3461 and signs the document;
thus, the merchandise is released without a Customs official ever looking at
the documents.

PO Purchase Order

Port of Entry A port at which foreign goods are admitted into the receiving country; port
where the imported merchandise is entered for consumption.

Port of Import First port within the Customs territory where imported merchandise arrives.

Pro Forma Invoice An invoice provided by a supplier prior to the shipment of merchandise
informing the buyer of the kinds and quantities of goods to be sent, their value,
and important specifications (weight, size, etc.).

Protest A “protest” is the method primarily used by importers to take issue with
Customs decisions with which they disagree. A protest is normally utilized as
an opportunity to provide evidence that will result in the refund of duties and
other charges that were erroneously paid.

Reasonable Care “That degree of care which a person of ordinary prudence would exercise in
the same or similar circumstances. Due care under all circumstances. Failure
to exercise such care is ordinary negligence.”

Related Parties  Members of the same family, spouse, and lineal descendants
 Officers or directors if each individual is also an officer or director of the
other organization
 Partners
 Person owning, controlling or holding with power to vote 5% or more of
outstanding stock
 Person who is an officer or director in both organizations

SACU Southern African Customs Union

SADC Southern African Development Community

SDN Specially Designated Nationals

SED Shipper’s Export Declaration

Shipping Weight Shipping weight represents the gross weight in kilograms of shipments,
including the weight of moisture content, wrappings, crates, boxes and
containers (other than cargo vans and similar substantial outer containers).

Ships Manifest A list, signed by the captain of a ship, of the individual shipments constituting
the ship’s cargo.

SLI Shippers Letter of Instruction

SO Sales Order

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Surety Bond A surety bond is a promise or guarantee of payment to U.S. Customs in the
event of a default in any terms of the importation laws. If the importer does
not comply, Customs will look to the surety for payment and compliance.
Tare Weight The weight of a container and/or packing materials without the weight of the
goods it contains.
Tariff List or schedule of merchandise with applicable rates to be paid or charged for
each listed article. A schedule of duties or taxes assessed by a government on
goods as they enter or leave a country.
Tariff Rate Quota Permits a specified quantity of merchandise to be entered at a reduced rate
during a specified period.
Tariff Shift A change in tariff classification may be from one heading in a chapter to
another heading in the same chapter. Some changes must be from one
chapter to another chapter.
TDO Table of Denial Orders
Textile Declaration In addition to the original textile visa, shipments containing textiles must be
accompanied by either a single or multiple country declaration which
provides certification as to the article and country of origin.
Through Bill of Lading A single bill of lading covering receipt of the cargo at the point of origin for
delivery to the ultimate consignee, using two or more modes of
transportation.
TIB The Temporary Importation Bond (TIB) procedures allow importers to enter
merchandise that will be exported within one year from importation for
temporary use without paying duties. Merchandise entered under a TIB
cannot be sold but can be repaired, altered or processed.
Trade Name Name by which a commodity is commonly known in a trade; a name used as
a trademark.
Trademark A symbol, design, word, letter, etc., used by a manufacturer or dealer to
distinguish his products from those of competitors and usually registered and
protected by law.
Trailer Vehicle without motor power designed to be drawn by another vehicle and so
constructed that no part of its weight rests upon the towing vehicle.
Transaction Value Transaction Value is the price actually paid or payable for the imported goods,
with additions made for any dutiable items not included, or deductions made
for any non-dutiable items included.
Transfer Pricing Overpricing of imports and/or under-pricing of exports between affiliated
companies in different countries for the purpose of transferring profits,
revenues or monies out of a country in order to evade taxes.
Transship Cargo, which is transferred from one vessel to another.

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TSCA The Toxic Substances Control Act is intended to protect human health and the
environment from unreasonable risks of certain chemicals. The EPA and U.S.
Customs Service are responsible for keeping chemicals that have not
undergone risk screening out of the United States.
TWEA Trading with the Enemy Act
UCP 500 Uniform Customs and Practice for Documentary Credits
Ultimate Consignee The ultimate consignee is the person located abroad who is the true party in
interest, receiving the export for the designated end-use.
Ultimate Purchaser The ultimate purchaser is generally the last person in the United States who
will receive the article in the form in which it was imported.
URAA Uruguay Round Agreements Act
USITC U.S. International Trade Commission
USTR United States Trade Representative
Value Added Fee This method of pricing offers a base entry fee with extra charges for additional
classifications, additional invoices, issuance of delivery orders, freight
tracking, phone and fax charges and other miscellaneous services.
Visa A visa is an endorsement in the form of a stamp on an invoice and consists of
a stamped authorization that is usually circular, square, or rectangular in
shape. The visa number normally consists of a standard nine digit number. *
Click here for more on a textile visa.
War Risk Insurance coverage for loss of goods resulting from any act of war.
Wharf age A charge assessed by a pier or dock owner for handling incoming or outgoing
cargo.
WTO World Trade Organization

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